On July 1,2012,Slowinski Company Borrows $100,000 on a 10% Note

Multiple Choice

On July 1,2012,Slowinski Company borrows $100,000 on a 10% note due to a bank in one year.The accounts of Slowinski Company are affected by the adjusting entry at December 31,2012 in which of the following ways?

A) increase assets and decrease expenses
B) increase assets and increase liabilities
C) increase expenses and increase liabilities
D) increase expenses and increase stockholders' equity