Use the Following Information for Questions
London Bank and Trust

Use the following information for questions
London Bank and Trust agrees to lend the Beckham Company £2,000,000 on January 1, 2010.Beckham Company signs a ₤2,000,000, 6%, 9-month note.
-The entry made by Beckham Company on January 1 to record the proceeds and issuance of the note is

A) $\begin{array} { l } \text { Interest Expense }&90,000 \\ \text { Cash}& 1,910,000\\ \text {Notes Payable }&&2,000,000 \\\end{array}$

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

C) $\begin{array} { l } \text { Cash }&2,000,000 \\ \text { Interest Expense }&90,000 \\ \text {Notes Payable }&&2,090,000 \\\end{array}$

D) $\begin{array} { l } \text { Cash }&2,000,000 \\ \text { Interest Expense}&90,000 \\ \text { Notes Payable}&2,000,000 \\ \text {Interest Payable } &90,000\\\end{array}$