On August 1 Year 1 Gin Company borrowed $50,000 cash. The one-year note carried a 6% rate of interest Which of the following shows how the accrual of interest expense in Year 1 will affect Gin's financial statements? Balance Sheet Income Statement Stockholders Statement of Cash Assets Liabilities + Equity Revenue A Expense Net Income n/a Flows 1,250 (1,250) n/a 1,250 B. (1,250) n/a 1,250 (1,250) n/a 1,250 C. (1,250) (1,750) 1,250 IA (1,750) n/a n/a D. n/a n/a (1,750) IN n/a 1,750 (1.750) n/a 1,750 (1,750) n/a n/a Multiple Choice Choice O Choice Choice