Question: On June 1, 2012, Micro Tel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Required

On June 1, 2012, Micro Tel 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 Micro Tel's books on June 1, 2012.

2. Identify and analyze the adjustment on Micro Tel's books on June 30, 2012.

3. Identify and analyze the transaction on Micro Tel's books on July 31, 2012, when Maxi-

Driver repays the principal and interest.

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