Question: On June 1, 2010, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Required 1.

On June 1, 2010, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.


Required

1. Identify and analyze the transaction on MicroTel’s books on June 1, 2010.

2. Identify and analyze the adjustment on MicroTel’s books on June 30, 2010.

3. Identify and analyze the transaction on MicroTel’s books on July 31, 2010, when MaxiDriver repays the principal and interest.


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