Whitmore Corporation Issues a £1,800,000, 10%, 10-Year Mortgage on December

Multiple Choice

Whitmore Corporation Issues a £1,800,000, 10%, 10-year mortgage on December 31, 2017. The terms call for semi-annual installment payments of £144,435.The entry to record the first installment payment will include

A) a debit to Interest Payment of £144,435.
B) a debit to Mortgage Notes Payable of £54,435.
C) a debit to Interest Expense of £180,000.
D) a credit to cash of £144,435.