Purchased equipment costing $20,000. Paid the seller of the equipment $8,000 cash at the time of the purchase. Also at the time of the purchase gave the seller of the equipment a note promising to pay the other $12,000 in one year. The annual interest rate on the note is 6%. The interest will be paid when the note is due in one year. Account Name Debit Credit 20,000 A. Equipment 8,000 Cash 12.000 Notes Payable 20.000 B. Equipment 12,000 Cash 8,000 Notes Payable 20,720 C. Equipment 8.000 Cash 12,720 Notes Payable 20,720 D. Equipment 8.720 Cash 12,000 Notes Payable Record an adjusting entry for 3 months of interest on the note referred to in transaction Q45. Account Name Debit Credit 720 A. Interest Expense Interest Payable 720 360 B. Interest Expense Interest Payable 360 180 180 C. Interest Expense Interest Payable D. Interest Expense Interest Payable 60 60 Answer A Answer B O Answer O Answer D None of the answers are correct