Taylor Bank lends Guarantee Company $$107,000$ on January $1.$ Guarantee Company signs a $$107,000,7\%,9-$month, interest$-$bearing note. The entry made by Guarantee Company on January $1$ to journalize the proceeds and issuance of the note is

a$.$

Account Debit Credit

Interest Expense $5,618$

Cash $101,382$

Notes Payable $107,000$

b$.$

Account Debit Credit

Notes Payable $107,000$

Interest Payable $2,809$

Cash $107,000$

Interest Expense $2,809$

c$.$

Account Debit Credit

Cash $112,618$

Interest Expense $5,618$

Notes Payable $107,000$

d$.$

Account Debit Credit

Cash $107,000$

Notes Payable $107,000$