Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent

Question:

Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent interest.

Required

a. Record these general journal entries for Rainey Enterprises:

(1) The loan to Small Co.

(2) The adjusting entry at December 31, 2016.

(3) The adjusting entry and collection of the note on June 1, 2017.

b. Show the effects of the three above transactions in a horizontal statements model like the one 0shown below:

Rainey Enterprises loaned $20,000 to Small Co. on June 1,

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Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Question Posted: Apr 20, 2015 07:23 AM

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Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent

Question:

Assets - Liab. Equity evExp. Net Inc. Cash Flows Date Cash Notes Rec. +Int. Rec Ret. Earn.

Step by Step Answer:

a Rainey Enterprises General Journal Date Account Titles Debit ...View the full answer

Fundamental Financial Accounting Concepts

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