On 1 October 2012 C Purchased a Building for $1

Multiple Choice

On 1 October 2012 C purchased a building for $1 250 000,paying $250 000 as a deposit and giving the seller a 12% mortgage for the balance.The monthly repayment was $14 000.The entry to record the payment on 1 November 2012 is:

A) Dr Interest expense $10 000; Dr Mortgage payable $4,000; Cr Bank $14 000
B) Dr Mortgage payable $14 000; Cr Bank $14 000
C) Dr Interest expense $10 000; Dr Bank $4,000; Cr Mortgage payable $14 000
D) Dr Interest expense $14 000; Cr Bank $14 000