On December 1, 2010, Brothers, Inc $\begin{array} { l } \text { December 31,2010 } \\\text { Interest Expense } &400\\\text { Discount on Note Payable }&&400\end{array}$

Multiple Choice

On December 1, 2010, Brothers, Inc.borrowed money at the bank by signing a 90-day non-interest-bearing note for $40, 000 that was discounted at 12%.Which of the following entries is not correct?

A)
$\begin{array} { l } \text { December 31,2010 } \\\text { Interest Expense } &400\\\text { Discount on Note Payable }&&400\end{array}$
B)
$\begin{array}{l}\text { March 1,2011 } \\\text { Interest Expense } &800 \\\text { Discount on Note Payable } &&800\end{array}$
C)
$\begin{array}{ll}\text { December } 31,2010 & \\\text { Discount on Note Payable } & 400 \\\text { Interest Expense } & 400\end{array}$
D)
$\begin{array}{lll}\text { December } 1,2010 & & \\\text { Cash } &38,800 & \\\text { Discount on Note Payable } & 1,200 \\\quad \text { Note Payable } & 40,000\end{array}$