A Corporation Borrowed $125,000 Cash by Signing a 5-Year,9% Installment

A corporation borrowed $125,000 cash by signing a 5-year,9% installment note requiring annual payments each December 31 of accrued interest plus equal amounts of principal.What journal entry would the issuer record for the first payment?

A)
$$\begin{array} { | c | r | r | } \hline \text { Interest Expense } & 2,250 & \\\hline \text { Notes Payable } & 25,000 & \\\hline \text { Cash } & & 27,250 \\\hline\end{array}$$
B)
$$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 27,250 & \\\hline \text { Interest Payable } & & 2,250 \\\hline \text { Cash } & & 25,000 \\\hline\end{array}$$
C)
$$\begin{array} { | c | r | r | } \hline \text { Interest Expense } & 11,250 & \\\hline \text { Notes Payable } & 25,000 & \\\hline \text { Cash } & & 36,250 \\\hline\end{array}$$
D)
$\begin{array}{|c|r|r|}\hline \text { Notes Payable } & 25,000 & \\\hline \text { Cash } & & 25,000 \\\hline\end{array}$
E)
$$\begin{array} { | c | r | r | } \hline \text { Notes Payable } & 11,250 & \\\hline \text { Cash } & & 11,250 \\\hline\end{array}$$