On June 1, 2010, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in

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On June 1, 2010, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.

Required

1. Identify and analyze the transaction on MicroTel’s books on June 1, 2010.

2. Identify and analyze the adjustment on MicroTel’s books on June 30, 2010.

3. Identify and analyze the transaction on MicroTel’s books on July 31, 2010, when MaxiDriver repays the principal and interest.

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 02:44 AM

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On June 1, 2010, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in

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1 The effect of the transaction on June 1 2010 can be identified and ...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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