Franklin Company issued a $40,000 note to the Mercantile Bank on August 1, Year 1. The note carried a one-year term and a 12% rate of interest. The accrual of interest on December 31, Year 1 will: Multiple Choice Decrease assets and decrease retained earnings by $2,000. Increase liabilities and decrease stockholders' equity by $1,600. Decrease stockholders' equity and increase liabilities by $4,800 Increase liabilities and decrease stockholders' equity by $2,000