A Business Makes a Payment of $1,200 on a Note

Multiple Choice

A business makes a payment of $1,200 on a note payable,consisting of a $200 interest payment and a $1,000 principal payment.Which of the following journal entries would be recorded?

A) $$\begin{array} { | l | r | r | } \hline \text { Notes payable } & 1,000 & \\\hline \text { Interest expense } & 200 & \\\hline \text { Cash } & & 1,200 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 1,200 & \\\hline \text { Notes payable } & & 1,000 \\\hline \text { Interest expense } & & 200 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Notes payable } & 1,200 & \\\hline \text { Cash } & & 1,000 \\\hline \text { Interest expense } & & 200 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Notes payable } & & 1,200 \\\hline \text { Interest expense } & & 200 \\\hline\end{array}$$