Calzone, Inc. signs a 9% 4-month $50,000 loan with Reliable Bank on October 1, 2015. Determine the effects on the accounting equation for the following items:
A. The signing of the loan on October 1, 2015 by Calzone, Inc.
B. The recording of the interest on December 31, 2015 by Calzone, Inc.

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The Answer of Calzone, Inc. signs a 9% 4-month $50,000 loan with Reliable Bank on October 1, 2015. Determine the effects on the accounting equation for the following items:
A. The signing of the loan on October 1, 2015 by Calzone, Inc.
B. The recording of the interest on December 31, 2015 by Calzone, Inc.