What is the impact of dishonoring a promissory note on a company's financial statements?

A. The company's assets, liabilities, and equity remain the same.

B. The company's assets and liabilities decrease, equity remains the same.

C. The company's assets and equity decrease, liabilities remain the same.

D. The company's assets and equity decrease, and liabilities increase.

E. The company's assets decrease, liabilities increase, and equity remains the same.