Moss County Bank agrees to lend the Kingbird Company $$400000$ on January $1.$ Kingbird Company signs a $$400000,9\%,9-$ month

note. Recording the proceeds and issuance of the note by Kingbird Company on January $1$ includes a$($n$)$

Increase to Cash and to Notes Payable for $$400000.$

Increase to Cash for $$400000,$ increase to Interest Expense for $$27000,$ increase to Notes Payable for $$400000,$ and an

increase to Interest Payable for $$27000.$

Increase to Cash for $$400000,$ increase to Interest Expense for $$27000,$ and an increase to Notes Payable for $$427000.$

Increase to Interest Expense for $$27000,$ increase to Cash for $$373000,$ and an increase to Notes Payable for $$400000.$