Babb Enterprises loaned $25,000 to Sneathen Co. on September 1, 2012, for one year at 6 percent

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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.

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Survey of Accounting

ISBN: 978-0078110856

3rd Edition

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

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Question Posted: May 19, 2012 03:57 AM

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Babb Enterprises loaned $25,000 to Sneathen Co. on September 1, 2012, for one year at 6 percent

Question:

Assets -Liab. Equity Rexp. NetInc. Cash Flow Date Cash + Notes Rec. + Int. Rec. Ret Earn.

Step by Step Answer:

Babb Enterprises Balance Sheet Income Statement Statement of Date Assets ...View the full answer

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