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

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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.

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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Question Posted: Jan 03, 2012 04:15 AM

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

Question:

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

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Morris Enterprises Balance Sheet Income Statement Statement of Date Assets Equity Rev Exp ...View the full answer

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