Watunga county bank agrees to lend hoffman granite company $600,000 on January 1. Hoffman granite company signs a $60,000, 8%, 9-month note. The entry made by Hoffman granite on January 1 to record the proceeds and issuance of the note is:

A) interest expense............36,000

cash...................................564,000

notes payable..................................................600,000

B) Cash...............................600,000

Notes payable...................................................600,000

C) Cash................................600,000

interest expense...................36,000

notes payable......................................................636,000

D) Cash..................................600,000

interest expense......................36,000

notes payable..........................................................600,000

interest payable........................................................36,000