Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent

Question:

Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent interest.

Required

a. Record these general journal entries for Rainey Enterprises:

(1) The loan to Small Co.

(2) The adjusting entry at December 31, 2016.

(3) The adjusting entry and collection of the note on June 1, 2017.

b. Show the effects of the three above transactions in a horizontal statements model like the one 0shown below:

Rainey Enterprises loaned $20,000 to Small Co. on June 1,

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

See More Books

Question Posted: Apr 20, 2015 07:23 AM

See More Questions

Top Up is a levered firm with assets valued at $300,000, has $25,000 of debt issued at 7% interest, and 2,000 shares of stock outstanding. Suppose that corporate profits are subject to a tax rate of...
One thousand dollars is borrowed for one year at an interest rate of 1%per month. If the same sum of money could be borrowed for the same period at an interest rate of 12% per year, how much could be...
A company lends a major client $90,000 for one year at a 7% annual interest rate. Interest payments are to be made twice a year but the company wants to recognize interest earned on a monthly basis....
Describes 7shifts' pioneering role in revolutionizing restaurant management through cloud-based solutions.
If Valdez wants to ensure that his customers wait an average of around 10 minutes, what should be his average service time? Assume that the standard deviation of service time remains at 15 minutes.
What is a scenario analysis, what is it designed to show, and how does it differ from a sensitivity analysis? AppendixLO1
4. Suppose x1 N(2, 0.5) and x2 N(8, 14). The correlation between x1 and x2 is 0.3. What is the distribution of x1+ x2? What is the distribution of x1 x2?
Presented below are selected accounts for Dawson Company as reported in the worksheet at the end of May 2012. InstructionsComplete the worksheet by extending amounts reported in the adjusted trial...
Please complete this case study using the following assumptions for Part 1 and Part 2 : INTRODUCTION Snowie , owned by Carl and Gordon Rupp, is a company that provides training, equipment, and...
Provident Company purchased an equipment on July 1, 2020 for P1,500,000 cash for the purpose of leasing it. The equipment has an estimated useful life of 10years from the date of purchase. On October...
Joeys Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2016, its first year of operations, Joeys Bike...
On May 1, 2016, Benzs Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent interest. Required Answer the following questions: a. What is Benzs interest income for 2016? b. What is...
On May 5, 2012, Jill purchased equipment for $40,000 to be used in her business. She did not elect to expense the equipment under Section 179 or bonus depreciation. On January 1, 2017, she sells the...
This case study is based on a fictional character on NBC's The Office. Michael is the central character of the series, serving as the Regional Manager of the Scranton branch of a paper distribution...
What is the significance of a balance sheet in understanding a firm's financial position? How do changes on the right side of the balance sheet (liabilities and equity) impact a company's financial...
A current event analysis where the article must focus on a management concepts). You will read the article and then provide an analysis of the subject matter discussed. The article should complement...
Given an exponential distribution with =20, what is the probability that the arrival time is a. less than X=0.2? b. greater than X = 0.2? c. between X=0.2 and X 0.3? d. less than X=0.2 or greater...
Choose at least two measures of employee attitudes. Discuss them and tell me about your discussion. Which group you believe are the most effective and efficient measures? Why? 2) Discuss turnover,...
The Federal Election Commission collects information about campaign contributions and disbursements for candidates and political committees each election cycle. During the 2012 campaign season, there...
Write the statement to store the contents of the txtAge control in an Integer variable named intAge.
List three factors relevant for a countrys choice of an exchange rate system. Using the United States as an example, explain how these factors may have affected U.S. policy regarding floating...
What is a ledger? What is its function in the accounting system?
At a minimum, what information is recorded in the general journal?
When should a trial balance be prepared?
All of the following are roles of a derivative exchange EXCEPT: _____. A) maintaining margin requirements on futures contracts B) reducing the default risk on forward contracts C) performing daily...
you are analyzing the cost of debt for a firm. Do you know that the firms 14 year maturity, 7.8 Percent coupon bonds are selling at a price of $834. The Barnes pay interest semi annually. If these...
***Please answer the following using excel and showcasing the formulas/calculations used*** thank you so much Financial information on AAA Ltd. is shown below. AAA Ltd. Income Statement For the Year...

Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent

Question:

Assets - Liab. Equity evExp. Net Inc. Cash Flows Date Cash Notes Rec. +Int. Rec Ret. Earn.

Step by Step Answer:

a Rainey Enterprises General Journal Date Account Titles Debit ...View the full answer

Fundamental Financial Accounting Concepts

Students also viewed these Accounting questions