Watunga County Bank Agrees to Lend Hoffman Granite Company $600000 $\begin{array}{lll} \text {Interest Expense } &36,000\\ \text { Cash. } &564,000\\ \text {Notes Payable } &&600,000\end{array}$

Watunga County Bank agrees to lend Hoffman Granite Company $600000 on January 1. Hoffman Granite Company signs a $600000 8% 9-month note. The entry made by Hoffman Granite on January 1 to record the proceeds and issuance of the note is a.
$\begin{array}{lll} \text {Interest Expense } &36,000\\ \text { Cash. } &564,000\\ \text {Notes Payable } &&600,000\end{array}$

b.
$\begin{array}{lll} \text { Cash} &600,000\\ \text { Notes Payable } &&600,000\end{array}$

c.
$\begin{array}{lll} \text { Cash } &600,000\\ \text { Interest Expense } &36,000\\ \text {Notes Payable } &636,000\end{array}$

d.
$\begin{array}{lll} \text { Cash } &600,000\\ \text { Interest Expense} &36,000\\ \text {Notes Payable } &&600,000\\ \text { Interest Payable } &&36,000\end{array}$