Cachet Enterprises loaned $30,000 to Craft Co. on September 1, 2016, for one year at 6 percent

Question:

Cachet Enterprises loaned $30,000 to Craft Co. on September 1, 2016, for one year at 6 percent interest.

Required

a. Record these general journal entries for Cachet Enterprises:

(1) The loan to Craft Co.

(2) The adjusting entry at December 31, 2016.

(3) The adjusting entry and collection of the note on September 1, 2017.

b. Show the effects of the three above transactions in a horizontal statements model like the one shown below.

Cachet Enterprises loaned $30,000 to Craft Co. on September 1,

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Related Book For book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Question Posted: Apr 20, 2015 07:25 AM

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Cachet Enterprises loaned $30,000 to Craft Co. on September 1, 2016, for one year at 6 percent

Question:

Assets Liab. + Equity Rev. - Exp. = Net Inc. Cash Flows Date Cash Notes Rec. + Int. Rec. Ret. Earn.

Step by Step Answer:

a Cachet Enterprises General Journal Date Account Titles Debit ...View the full answer

Fundamental Financial Accounting Concepts

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