Babb Enterprises loaned $25,000 to Sneathen Co. on September 1, 2012, for one year at 6 percent
Question:
Babb Enterprises loaned $25,000 to Sneathen Co. on September 1, 2012, for one year at 6 percent interest.
Required
Show the effects of the following transactions in a horizontal statements model like the one shown below.
(1) The loan to Sneathen Co.
(2) The adjusting entry at December 31, 2012.
(3) The adjusting entry and collection of the note on September 1,2013.
Transcribed Image Text:
Assets -Liab. Equity Rexp. NetInc. Cash Flow Date Cash + Notes Rec. + Int. Rec. Ret Earn.
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Related Book For
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
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