Company a and Company B Each Borrow $2,000 from the Bank

Company A and Company B each borrow $2,000 from the bank. Company A signed a 60-day, 12% note. Company B signed a 90-day, 11% note. How will each of these companies record these events in their respective general journals on the day the money was borrowed?

A) Company A
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,000 & \\\hline \text { Notes Payable } & & 2,000 \\\hline\end{array}$ Company B
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,000 & \\\hline \text { Notes Payable } & & 2,000 \\\hline\end{array}$ 00 Notes Payableompany record this event in the general journal?
B) Company A
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,040 & \\\hline \text { Interest Expense } & & 40 \\\hline \text { Notes Payable } & & 2,000 \\\hline\end{array}$ Company B
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,055 & \\\hline \text { Interest Expense } & & 55 \\\hline \text { Notes Payable } & & 2,000 \\\hline\end{array}$
C) Company A
$\begin{array}{|c|r|r|}\hline \text { Notes Payable } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}$ Company B
$\begin{array}{|c|r|r|}\hline \text { Notes Payable } & 2,000 & \\\hline \text { Cash } & & 2,000 \\\hline\end{array}$
D) Company A
$\begin{array}{|l|r|l|}\hline \text { Interest Expense } & 40 & \\\hline \text { Notes Payable } & 2,000 & \\\hline \text { Cash } & & 2,040 \\\hline\end{array}$ Company B
$\begin{array}{|l|r|r|}\hline \text { Interest Expense } & 55 & \\\hline \text { Notes Payable } & 2,000 & \\\hline \text { Cash } & & 2,055 \\\hline\end{array}$
E) . Company A
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,040 & \\\hline \text { Notes Payable } & & 2,040 \\\hline\end{array}$ Company B
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,055 & \\\hline \text { Notes Payable } & & 2,055 \\\hline\end{array}$