On July 1,20A,Goode Company Borrowed $10,000

On July 1,20A,Goode Company borrowed $10,000.The company signed a note payable with interest at 12 percent per year.The note and interest are due on December 31,20A.On December 31,20A,Goode paid $10,600 to settle the debt in full.Transaction analysis of the $10,600 cash payment on December 31,20A,should reflect which of the following?

A) decrease assets,$10,600; decrease liabilities,$10,600.
B) decrease assets,$10,000; decrease shareholders' equity,$600; and decrease liabilities,$10,600.
C) decrease liabilities,$10,000; decrease shareholders' equity,$600; and decrease assets,$10,600.
D) decrease shareholders' equity,$10,000; decrease liabilities,$600; and decrease assets,$10,600.