On January 1, Year 1, Niagara Corporation arranges a $6,000 line of credit with Centennial Bank. It accepted the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and repayments are to take place on January 1 of each year.Niagara begins its loan transactions with Centennial Bank by borrowing $2,000 on January 1, Year 1. Niagara records the first year's interest payment on December 31, Year 1. Centennial's prime rate is 4% for Year 1. Which of the following shows the effect of this event on the financial statements? 
Definitions:
Ten or More Employees
A reference to a business or organization that has a workforce of ten or more individuals, often used in legal and regulatory contexts to determine applicability of certain rules.
Conceals Property
The act of intentionally hiding or obscuring ownership or the location of items to prevent their discovery or recovery, often for unlawful purposes.
Destroy Records
The act of intentionally eliminating or erasing records, documents, or data, often to prevent information from being discovered.
Consumer Education Course
A program designed to inform individuals about their rights, responsibilities, and best practices as consumers.
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