Grayson Bank Agrees to Lend the Trust Company $100,000 on January

Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 12%, 9-month note. What entry will Trust Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

A) $\begin{array}{lll}\text { Notes Payable } & 109,000\\\text { Cash }&~~~~~109,000 \end{array}$

B) $\begin{array}{lrr}\text { Notes Payable } & 100,000 & \\\text { Interest Payable } & 9,000 & \\\quad \text { Cash } & & 109,000\end{array}$

C) $\begin{array}{crr}\text { Interest Expense } & 12,000 & \\\text { Notes Payable } & 100,000 & \\\text { Cash } & & 112,000\end{array}$

D) $\begin{array}{lrr}\text { Interest Payable } & 12,000 & \\\text { Notes Payable } & 100,000 & \\\quad \text { Cash } & & 112,000\end{array}$