Cachet Enterprises loaned $30,000 to Craft Co. on September 1, Year 1, for one year at 6 percent interest.

Required
Show the effects of the following transactions in a horizontal statements model like the one shown next.
1. The loan to Craft Co.
2. The adjustment at December 31, Year 1.
3. The adjustment and collection of the note on September 1, Year 2.

Transcribed Image Text:

Balance Sheet Income Statement = Llab. + Equlty Statement of Cash Assets Ret. Earn. Net Notes Flows Int. Exp. Inc. Date Cash + Rec. + Rec. = Rev.