Question: On November 1 , ABC Corp. borrowed $ 1 0 0 , 0 0 0 cash on a 1 - year note payable with a

On November 1, ABC Corp. borrowed $100,000 cash on a 1-year note payable with a 6% annual rate that requires ABC to pay all the interest as well as the principal on October 31 of the following year. Assuming the November 1 transaction was properly recorded, how would the December 31, year-end adjusting entry affect the accounting equation?

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