On October 1, Pinnacle Co. signs a note for $360,000 to provide the funds needed to build a new facility. The note is due in 10 years, includes an annual interest rate at 7%, and requires semiannual interest payments each April and October. The journal entry to record the issuance of the promissory note should debit:

A. Notes Payable for $360,000, debit Interest Expense for $25,200, credit Cash for $360,000, and credit Interest Payable for $25,200.

B. Cash and credit Notes Payable for $360,000.

C. Cash for $360,000, debit Interest Expense for $25,200, credit Notes Payable for $360,000, and credit Interest Payable $25,200.

D. Accrued Interest and credit Cash for $25,200.