How would the issuance of a $2,400,000 5-year note on February 25, 2023, to pay off the existing $3 million note due on February 28, 2023, affect Parton's financial statements for the year?

A) Increase in total liabilities on the balance sheet.
B) Increase in cash and decrease in long-term liabilities on the balance sheet.
C) Decrease in cash and increase in long-term liabilities on the balance sheet.
D) Increase in both short-term and long-term liabilities on the balance sheet.