Question: Problem 2 Pierce Veteran Services, Inc. has a December 31 fiscal year end. On July 1, 2022, the nonprofit organization issues notes payable of $100,000,

Problem 2 Pierce Veteran Services, Inc. has a December 31 fiscal year end. On July 1, 2022, the nonprofit organization issues notes payable of $100,000, to be repaid in one year with interest of 4%. On October 1, 2022, the organization loans $50,000 to its CEO, which the CEO will repay in one year with 6% interest. Record the following: 1. Journal entries on July 1, 2022 and October 1, 2022. Also state the effect of each entry on net income and on the balance sheet equation. 2. Any necessary adjusting journal entries on December 31,2022 , related to the initial transactions above. Also state the effect of each entry on net income and on the balance sheet equation

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