Taylor Bank Lends Guarantee Company $150,000 on January 1

Taylor Bank lends Guarantee Company $150,000 on January 1.Guarantee Company signs a $150,000,8%,nine-month note.The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is​

A) Interest Expense 12,000Cash 138,000Notes Payable 150,000​
B) Cash 150,000Notes Payable 150,000​
C) Cash 162,000Interest Expense 12,000Notes Payable 150,000​
D) Notes Payable 120,000Interest Payable 7,200Cash 120,000Interest Expense 7,200