On March 1, Broke Corp

Multiple Choice

On March 1, Broke Corp. issues a 5 year, 8%, $60,000 note payable. The terms of the note include monthly blended principal and interest payments of $1,217. The entry to record the first instalment payment will include a

A) debit to Notes Payable of $1,217.
B) debit to Cash of $1,217.
C) credit to Interest Expense of $4,800.
D) debit to Interest Expense of $400.