On October 1,a $30,000,6%,three-Year Installment Note Payable Is Issued by a Company.The

Multiple Choice

On October 1,a $30,000,6%,three-year installment note payable is issued by a company.The note requires that $10,000 of principal plus accrued interest be paid at the end of each year on September 30.The issuer's journal entry to record the second annual interest payment would include:

A) A debit to Interest Expense for $1,800.
B) A debit to Interest Expense for $1,200.
C) A credit to Cash for $11,800.
D) A credit to Cash for $10,000.
E) A debit to Notes Payable for $1,200.