On August $1,$ Year $1,$ Gomez Company borrowed $$68,000$ cash. The one$-$year note carried a $25\%$ rate of

interest. Which of the following shows how the accrual of interest expense in Year $2$ will affect Gomez's

financial statements?

Balance Sheet Income Statement Statement

Assets $=$ Liabilities $+$ Equity Revenues $-$ Expenses $=$ Net of Cash

A$.NA=9,919+(9,919),NA-9,919=(9,919)(9,919)OA$

B$.NA=9,919+(9,919),NA-9,919=(9,919),NA$

C$.$ NA $,7,081+(7,081),NA-7,081=(7,081)(7,081)$ OA

D$.NA=7,081+(7,081),NA-7,081=(7,081),NA$

A$)$ Option A

B$)$ Option B

C$)$ Option C

D$)$ Option D