On October 1,you Borrow $200,000 for 10 Years at 7

Multiple Choice

On October 1,you borrow $200,000 for 10 years at 7% interest in order to build a new facility.In April and again in October of the following year,you pay half the annual interest to your creditors.The journal entry to record the issuance of the promissory note should:

A) debit Notes Payable for $200,000,debit Interest Expense for $14,000,credit Cash for $200,000,and credit Interest Payable for $14,000.
B) debit Accrued Interest for $14,000 and credit Cash for $14,000.
C) debit Cash for $200,000 and credit Notes Payable for $200,000.
D) debit Cash for $200,000,debit Interest Expense for $14,000,credit Notes Payable for $200,000,and credit Interest Payable $14,000.