Houston Company borrowed $20,000 from Dallas Company on March 1, Year 1. Houston is to repay the principal and interest on March 1, Year 2. The interest rate is 8%. If the year-end adjustment is properly recorded, what will be the effects of the accrual on Houston's Year 1 financial statements? Multiple Choice No effect Increase assets and increase revenues Increase liabilities and increase expenses Increase assets and increase liabilities