What is the effect of the following business activity on the element indicated? You made a Dec. 31 year-end entry for interest on a 1 year $85,000 loan, 3% interest, taken out Dec. 1. --- Expenses 1) increase to one and decrease to another 2) increase 3) decrease 4) no effect Question 2 (1 point) What is the effect of the following business activity on the element indicated? You pay $85 in interest that was appropriately accrued at the end of last month. -- Assets 1) increase 2) decrease 3) no effect 4) increase to one and decrease to another