A Business Making a Monthly Mortgage Payment That Included $1,200

Multiple Choice

A business making a monthly mortgage payment that included $1,200 principal and $300 interest should be recorded as:

A) $\begin{array} { | c | r | r | } \hline \text { Mortgage payable } & 1,200 & \\\hline \text { Interest payable } & 300 & \\\hline \text { Cash } & & 1,500 \\\hline\end{array}$
B) $\begin{array} { | c | r | r | } \hline \text { Mortgage payable } & 1,500 & \\\hline \text { Cash } & & 1,500 \\\hline\end{array}$
C) $\begin{array} { | c | r | r | } \hline \text { Cash } & 1,500 & \\\hline \text { Mortgage payable } & & 1,500 \\\hline\end{array}$
D) $\begin{array} { | c | r | r | } \hline \text { Mortgage payable } & 1,200 & \\\hline \text { Interest expense } & 300 & \\\hline \text { Cash } & & 1,500 \\\hline\end{array}$