Howard Company experienced an accounting event that is recorded in the following T-accounts:

Accrued Interest Expense			Interest Payable
2,700				2,700

Which of the following choices accurately reflects how this event would affect the company's financial statements?

A.

Assets

=

Liab.

+

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

n/a

n/a

+

OA

B.

Assets

=

Liab.

+

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

n/a

+

n/a

+

n/a

C.

Assets

=

Liab.

+

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

n/a

n/a

+

FA

D.

Assets

=

Liab.

+

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

n/a

+

n/a

n/a