Chanticlerc Co. lent Sharp Inc. $100,000 cash in exchange for a five-year, 4% note on July 1,

Question:

Chanticlerc Co. lent Sharp Inc. $100,000 cash in exchange for a five-year, 4% note on July 1, 2014. Interest is payable quarterly on January 1, April 1, July 1, and October 1 each year. Chanticlerc Co. has a December 31 year end.
(a) Record Chanticlerc's entries related to the note to January 1, 2015.
(b) Indicate what amounts will be reported in Chanticlerc's December 31, 2014, and where the amounts will be classified.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...