Veronica Lodge Borrowed $15,000 from a Bank on January 1

Multiple Choice

Veronica Lodge borrowed $15,000 from a bank on January 1, 2019 to finance her new business. She agrees to repay the bank on December 31, 2019, with $750 interest on the loan. In addition to increasing cash, what else should Veronica record on January 1, 2019?

A) An increase in a liability of $15,000
B) An increase in a liability of $15,750
C) An increase in equity of $15,000
D) An increase in a liability of $15,750, and a decrease in equity of $750