Nathan Township Financed Emergency Repairs on the Township Hall by Borrowing

Nathan Township financed emergency repairs on the Township Hall by borrowing on a $200,000, 6 month short-term note. The interest rate on the note was 6% and it was issued 2 months prior to the end of the fiscal year. Which of the following statements accurately reflects how the General Fund will be affected in the year the financing was acquired?

A) The General Fund will report an other financing source of $200,000.
B) The General Fund will report a Note Payable of $200,000.
C) The General Fund will report interest expenditures of $12,000.
D) The General Fund will report interest expense of $2,000.