Bread Basket Provides Baking Supplies to Restaurants and Grocery Stores $€ 30,000$

Bread Basket provides baking supplies to restaurants and grocery stores.On November 1, 2011, Bread Basket signed a €500,000, 6-month note payable.The note requires Bread Basket to pay interest at an annual rate of 12%.Assuming Bread Basket makes the appropriate adjusting entry, what is the impact on its December 31, 2011 statement of financial position?

A) An expense of $€ 30,000$ .
B) An expense of $€ 10,000$ .
C) A liability of $€ 10,000$ .
D) Two of the choices are correct.