On November 1. Year 1 Cove Company borrowed $7,000 cash to from Shelter Company. The one-year note carried a 7% rate of Interest Which of the following shows how the loan will affect Cove's financial statements on November 1, Year 1?

O O O Assets NA Balance Sheet Assets 7,000 Assets = Liab. + Equity NA Balance Sheet Liab. + Equity Balance Sheet Liab. + Equity 7,000 Balance Sheet Liab. + Equity Assets (7,000) (7,000) Rev. NA Rev. Rev. Rev. Income Statement Exp. = - Income Statement Exp. = Net Inc. Income Statement Exp. = NA Exp. Net Inc. NA = Income Statement Net Inc. Net Inc. Statement of Cash Flows (7,000) IA Statement of Cash Flows (7,000) FA Statement of Cash Flows 7,000 FA Statement of Cash Flows (7,000) IA