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 entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is

A. Cash ................. 400,000 Notes Payable ................. 400,000

B. Cash ................. 400,000 Interest Expense.... 12,000 Notes Payable ................. 400,000 Interest Payable ................... 12,000

C. Cash ................. 400,000 Interest Expense.... 12,000 Notes Payable ................. 412,000

D. Interest Expense............ 6,000 Cash. ................. 194,000 Notes Payable ................. 400,000