LLL Co. is looking to replace its old machinery. A supplier offers LLL Co. a great deal and will sell new equipment to LLL for $50,000 on January 1, 2023, and issue a five-year installment note payable at 4% interest. Installment payments of $11,231 are made annually. What are the journal entries to record the interest expense and payments for 2025? Select one:

a. Debit Interest Expense $1,247; debit Notes Payable $9,984; credit Cash $11,231

b. Debit Interest Expense $2,000; debit Notes Payable $9,231; credit Cash $11,231

c. Debit Interest Expense $11,231; credit Notes Payable $9,231; credit Cash $2,000

d. Debit Interest Expense $1,631; debit Notes Payable $9,600; credit Cash $11,231