On August 1, Year 1, Gomez Company borrowed $48,000 cash. The one-year note carried a 5% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will effect Gomez's financial statements? Balance Sheet Income Statement Statement of Assets = Liab. + Equity Rev. Exp. | = Net Inc. Cash Flows A. NA 1,400 + (1,400) NA B. = 1,400 + (1,400) - NA = 1,000 + (1,000) NA 1,400 = (1,400) 1,400 = (1,400) 1,000 = (1,000) (1,400) OA NA (1,000) OA NA = 1,000 + (1,000) NA - 1,000 = (1,000)