On January 1,2009,Amanda Mackenzie Purchased a $24,000 Car,making a $4,000 $\begin{array} { l l l } \text { Note Payable } & 6,038.47 & \\\quad \text { Cash } & & 6,038.47 \\\end{array}$

On January 1,2009,Amanda Mackenzie purchased a $24,000 car,making a $4,000 down payment,and borrowing the rest on a 4-year note at 8% interest.She agrees to make annual payments of $6,038.47,starting January 1,2010.What is the journal entry that Amanda would make on January 1,2010,for the first payment on the note?

A) $\begin{array} { l l l } \text { Note Payable } & 6,038.47 & \\\quad \text { Cash } & & 6,038.47 \\\end{array}$

B) $\begin{array}{lccc}\text { Interest Payable } & 1,600.00 & \\\text { Note Payable } & 4,438.47 & \\\quad \text { Cash } & & 6,038.47 \\\end{array}$

C) $\begin{array}{lccc}\text { Interest Expense } & 483.08 & \\\text { Note Payable } & 5,555.39 & \\\quad \text { Cash } & & 6,038.47 \\\end{array}$

D) $\begin{array}{lccc}\text { Interest Expense } & 1,920.00 & \\\text { Note Payable } & 4,118.47 & \\\quad \text { Cash } & & 6,038.47 \\\end{array}$

E) $\begin{array}{lccc}\text { Interest Expense } & 5,555.39 & \\\text { Note Payable } & 438.08 & \\\text { Cash } & & 6,038.47\end{array}$