Applefoot Ltd Enters into a Three Year Hire-Purchase Agreement to Purchase

Applefoot Ltd enters into a three year hire-purchase agreement to purchase a new motor vehicle.The financial details of the agreement are:
$$\begin{array}{l}\begin{array} { l r } \text { Cost price of car } & \$ 30000 \\\text { Deposit } & \underline { \$ 3000 } \\& \$ 33000 \\\text { Terms charges } & \underline { \$ 9000 } \\\text { Total cost of car } & \underline { \$ 2000 }\end{array}\\\text { Monthly payment } \quad \$ 1300\end{array}$$
Applefoot should record which of the following entries at the end of the first month? Note: Please assume that the interest is apportioned on a straight line basis for the purposes of this question.

A) $\begin{array} { l l } \text { Dr Lease expense } & \$ 1300 \end{array}$
$\mathrm { Cr }$ Cash at bank $\quad\$ 1300$
B) B) Dr HP liability $\quad\$ 1050$
Dr Accrued interest payable $\quad \$ 250$
Cr Cash at bank $\quad\$ 1300$
C) $\begin{array} { l r l } \text { C) Dr Interest expense } & \$ 250 \\\text { Dr Lease expense } & \$ 1050 & \\\text {Cr cash at bank} & & \$ 1300\end{array}$
D) Dr Motor vehicle (asset account) $\quad\$ 1300$
Cr Cash at bank $\quad\$ 1300$