On January 1, 2012, Alice & Co

On January 1, 2012, Alice & Co. lends $5,000 to an employee and accepts a 24-month, 10% note. At the end of 2012, what effect will the adjustment for accrued interest revenue have on the Alice & Co.'s financial statements?

A) Decreases assets.
B) Decreases revenue.
C) Increases expense.
D) Increases stockholders' equity.