Miranda Company Borrowed $100,000 Cash on September 1,2010,and Signed a One-Year

Miranda Company borrowed $100,000 cash on September 1,2010,and signed a one-year 6%,interest-bearing note payable.The interest and principal are both due on August 31,2011.Assume that the appropriate adjusting entry was made on December 31,2010 and that no adjusting entries have been made during 2011.The required journal entry to pay the note on August 31,2011 would be which of the following?

A) $\begin{array} { l r r } \text { Interest expense } & 6,000 & \\\quad \text { Cash } & & 6,000\end{array}$
B) $\begin{array} { l r r } \text { Interest expense } & 4,000 & \\\text { Interest payable } & 2,000 & \\\text { Notes payable } & 100,000 & \\\text { Cash } & & 106,000\end{array}$
C) $\begin{array} { l r r } \text { Notes payable } & 100,000 & \\\text { Interest expense } & 6,000 & \\\quad \text { Cash } & & 106,000\end{array}$
D) $\begin{array} { l r r } \text { Interest payable } & 2,000 & \\\text { Notes payable } & 100,000 & \\\quad \text { Cash } & & 102,000\end{array}$