On January 1, 2014, Hays Corporation arranged a $3,000 line of credit with the Barnett Bank. It… 1 answer below »

On January 1, 2014, Hays Corporation arranged a $3,000 line of credit with the Barnett Bank. It agreed to accept the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and payments on principal are to take place on January 1 of each year.
Hays began its loan transactions with Barnett Bank by borrowing $1,000 on January 1, 2014. Which of the following answers shows the effect of this event on the financial statements?

 

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