Question: Morris Enterprises loaned $60,000 to Faello Co. on October 1, 2012, for one year at 8 percent interest. Required Show the effects of the following

Morris Enterprises loaned $60,000 to Faello Co. on October 1, 2012, for one year at 8 percent interest.

Required

Show the effects of the following transactions in a horizontal statements model like the one shown below.

(1) The loan to Faello Co.

(2) The adjusting entry at December 31, 2012.

(3) The adjusting entry and collection of the note on September 1,2013.

Morris Enterprises loaned $60,000 to Faello Co. on October 1,

Assets Liab. + Equity Rev.-Exp. Net Inc. Cash Flow Date Cash + Notes Rec. + Int. Rec. = Ret Eam

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