West County Bank agrees to lend the Block Builders Company $100,000 on January 1. Block Builders Company signs a $100,000, 6%, 6-month note.

The entry made by Block Builders Company on January 1 to record the proceeds and issuance of the note is

a. Interest Expense 3,000
Cash. 97,000
Notes Payable 100,000
b. Cash 100,000
Notes Payable 100,000
c. Cash 100,000
Interest Expense 3,000
Notes Payable 103,000
d. Cash 100,000
Interest Expense 3,000
Notes Payable 100,000
Interest Payable 3,000