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. What journal entry will Backyard make when paying off the note and interest at maturity? (Hint: Backyard's records had been adjusted on June 30) .

A) Debit notes payable $206,000; Credit cash $206,000
B) Debit notes payable $200,000 and interest expense $4,000; Credit cash $204,000
C) Debit notes payable $200,000 and interest expense $6,000; Credit cash $206,000
D) Debit notes payable $200,000,interest expense $2,000 and interest payable $4,000; Credit cash $206,000