Adjusting Entries On April 1, GHI Corp. took out a 12%, 120-day, $10,000 loan at its bank. Identify and analyze the effect of the adjustment on April 30. Activity Accounts Operating Statement(s) Feedback Check My Work Correct Interest Payable Increase, Interest Expense Increase Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Stockholders' Assets Liabilities + Equity No Entry 0 Interest Payable Revenues Income Statement Net Expenses = Income