Taylor Bank Lends Guarantee Company $150,000 on January 1

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9- month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

A) Interest Expense 12,000
Cash
138,000
Notes Payable
150,000
B) Cash 150,000 Notes Payable 150,000
C) Cash 162,000
Interest Expense
12,000
Notes Payable
150,000
D) Notes Payable 120,000
Interest Payable
7,200
Cash
120,000
Interest Expense
7,200