What effects would the accrual of $160 of interest on a note payable have on financial statements?

Name: What effects would the accrual of $160 of interest on a note payable have on financial statements?
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Interest is recorded on the balance sheet as interest payable, increasing liabilities by $160, decreasing retained earnings by $160, and adding $160 to expenses on the income statement. Since no cash is spent to pay the note or the interest, cash assets are not affected.

What Effects Would the Accrual of $160 of Interest on a Note