West County Bank Agrees to Lend Drake Builders Company $400000

West County Bank agrees to lend Drake Builders Company $400000 on January 1.Drake Builders Company signs a $400000 6% 6-month note.Recording the proceeds and issuance of the note by Drake Builders Company on January 1 includes a(n)

A) Increase to Interest Expense for $6000 increase to Cash for $194000 and an increase to Notes Payable for $400000.
B) Increase to Cash and to Notes Payable for $400000.
C) Increase to Cash for $400000 increase to Interest Expense for $12000 and an increase to Notes Payable for $412000.
D) Increase to Cash for $400000 increase to Interest Expense for $12000 increase to Notes Payable for $400000 and an increase to Interest Payable for $12000.