Refer to the information in BE312. In BE312, Midshipmen Company borrows $15,000 from Falcon Company on July

Question:

Refer to the information in BE3–12.
In BE3–12, Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2015. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2016.
(1) Record the lending for Falcon on July 1, 2015.
(2) Record the adjusting entry for Falcon on December 31, 2015.
(3) Calculate the 2015 year-end adjusted balances of Interest Receivable and Interest Revenue (assuming the balance of Interest Receivable at the beginning of the year is $0).