John Dorval Trucking Co

John Dorval Trucking Co. purchased a new truck costing $45,750, paying $5,750 in cash and signing a one-year, 10% interest bearing note payable for the balance. The purchase of the new truck increases the Truck

A) and Retained Earnings accounts by $45,750.
B) account by $49,750, increases the Note Payable account by $44,000, and decreases the Cash account by $5,750.
C) account by $45,750, increases the Note Payable account by $40,000, and decreases the Cash account by $5,750.
D) account by $40,000 and increases the Note Payable account by $40,000.
E) account by $49,750, increases the Note Payable account by $40,000, increases the Interest Expense account by $4,000, and decreases Cash by $9,750.