On November 1,2015,ABC Corp

Multiple Choice

On November 1,2015,ABC Corp.borrowed $100,000 cash on a 1year note payable with a 6% annual rate that requires ABC to pay all the interest as well as the principal on October 31,2016.Assuming the November 1 transaction was properly recorded,how would the December 31,2015,year-end adjusting entry affect the accounting equation?

A) Liabilities decrease and stockholders' equity increases.
B) Both assets and stockholders' equity increase.
C) Liabilities increase and stockholders' equity decreases.
D) Liabilities increase and stockholders' equity increases.