Question 23 (2 points) West County Bank agrees to lend Drake Builders Company $400,000 on January 1. Drake Builders Company signs a $400,000, 6%, 6-month note. The adjustment required if Drake Builders Company prepares financial statements on March 31 includes a(n) 1) Increase to Interest Expense and to Interest Payable for $12,000. 2) Decrease to Interest Expense and to Cash for $12,000. 3) Increase to Interest Expense and to Interest Payable for $6,000. 4) Decrease to Interest Payable and to Interest Expense for $6,000