answer 7 and 8

The company had borrowed money and at the end of the accounting period, December 31, Year1, recorded interest for the period. What effect does this interest have on the financial statements in Year 1 ? Assets increase and stockholders' equity decreases. Assets increase and liabilities increase, Liabilitics increase and expenses increase. Assets increase and expenses increase. Question 8 TiM has a $1,000,000 long term debt that requires $100,000 to be paid every year plus the interest that has accrued since the last payment until the loan is paid. How would this liability be shown on TIM's balance sheet? $100,000 plus any unpaid interest as a current liability, the rest as a long-term liability. $900.000 plus any unpaid interest as a current liablity, the rest as a long term lability. $1,000,000 as a longterm liability. $1,000,000 plus any unpaid interest as a long-term fiability