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On November 12022, Plumbs and Sons borrowed $90,000 from the bank to purchase new uniforms...

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Accounting

On November 12022, Plumbs and Sons borrowed $90,000 from the bank to purchase new uniforms for its employees.Annual interest payments on the note are due beginning November 1,2023.The note has a two-year term and the interest rate is 10% annually. Which of the following statements correctly reflects the impact that interest should have on the 2022 financial statements?

Assets decrease by $1,500 Stockholders Equity increases by $1,500

Liabilities increase by $1,500

Liabilities increase by $9,000

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