Required information [The following information applies to the questions displayed below.] Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity. How would the adjusting entry to record interest expense on December 31, Year 1 affect the elements of the financial statements? Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow A. = 375 + (375) NA - 375 = (375) NA B. = 450 + (450) - 450 = (450) NA C. (375) = + (375) - 375 = (375) (375) OA D. (450) = (450) + NA - = || NA (450) OA