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On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the

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On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenue - Expense = Net Income Statement of Cash Flows A. 900 NA 900 900 NA 900 900 IA B. 900 NA 900 900 NA 900 NA c. 2,700 NA 2,700 2,700 NA 2,700 2,700 IA D. 2,700 NA 2,700 2,700 NA 2,700 NA Multiple Choice Option A Option Optionc

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