On December 1, 2021, ABC Company, borrows $40,000 cash to expand operations. The loan is made by First Bank under a short-term line of credit arrangement. The company signs a six-month, 6% promissory note. Interest is payable at maturity. ABC's year-end is December 31. Required: ABC Company should record which of the following adjusting entries at December 31, 2021? Dr. Interest expense and Cr. Interest payable, $200 Dr. Interest expense and Cr. Interest payable, $400 O Dr. Interest expense and Cr. Cash, $200 Dr. Interest expense and Cr. Cash, $400 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? $41,200 O $42,400 $42.000 $41,000 In connection with this note, ABC Company should report interest expense in 2022 for the amount of $1,000 $2,400 $2,000 $1.200