Question 13 (1 point) Our company issued a note for $120,000 on September 1, Year 1. The rate of interest was 3%. How would the adjusting entry to accrue interest expense affect the accounting equation? Increase liabilities and decrease equity, $3,600 Decrease assets and increase retained earnings, 1,200 Increase liabilities and decrease equity, $1,200 Decrease assets and decrease equity, $1,200 None of the other answers is correct