On September 1 , Joe's Painting Service Borrows $\$ 100,000$ From National Bank on a 4month

On September 1 , Joe's Painting Service borrows $\$ 100,000$ from National Bank on a 4month, $\$ 100,000,6 \%$ note. The entry by Joe's Painting Service to record payment of the note and accrued interest on January 1 is

A) $\begin{array} { l }\text { Notes Payable. }&102,000 \\ \text { Cash}&&102,000 \\\end{array}$

B) $\begin{array} { l }\text { Notes Payable }&100,000 \\ \text { Interest Payable}&2,000 \\ \text {Cash }& &102,000\\\end{array}$

C) $\begin{array} { l }\text { Notes Payable}&100,000 \\ \text {Interest Payable }& 6,000\\ \text {Cash }&&106,000 \\\end{array}$

D) $\begin{array} { l }\text { Notes Payable }&100,000 \\ \text { Interest Expense.}&2,000 \\ \text { Cash}&&102,000 \\\end{array}$