Company A has the following information excerpted from its financial statements: Suppose the company has only two liability accounts as of Dec. 31, year 2: Accounts payable and Loan payable. Which of the following statements is correct?
A - The balance in Loan payable as of Dec. 31 year 1 is $9,240.
B - The balance in Loan payable as of Dec. 31 year 2 is $9,240.
C - The balance in Loan payable as of Dec. 31 year 3 is $10,000.
D - The balance in Loan payable as of Dec. 31 year 1 is $2,840.