Travis County Bank Agrees to Lend Backyard Corporation $200,000 on January

Travis County Bank agrees to lend Backyard Corporation $200,000 on January 1.Backyard signs a $200,000,4%,9-month note.Interest is due at maturity on September 30. On January 1,which of the following journal entries will be made by Backyard to record the proceeds and issue of the note?

A) Debit interest expense $6,000 and cash $194,000; Credit notes payable $200,000
B) Debit cash $200,000; Credit notes payable $200,000
C) Debit interest expense $6,000 and cash $200,000; Credit notes payable $206,000
D) Debit cash $200,000 and interest expense $6,000; Credit notes payable $200,000 and interest payable $6,000