On September 1, 2019, Westwood Builders borrowed $200,000 from Colorado State Bank by issuing a 7-month, $200,000, 6% note. Westwood Builders recorded the December 31, 2019 year-end adjusting entry to accrue interest. What entry will Westwood Builders make to pay off the note and interest at maturity on April 1, 2020?

A.

Notes Payable

200,000

Interest Payable

7,000

Cash

207,000

B.

Notes Payable

200,000

Interest Expense

7,000

Cash

207,000

C.

Notes Payable

200,000

Interest Payable

4,000

Interest Expense

3,000

Cash

207,000

D.

Notes Payable

200,000

Cash

200,000