Effects of Interest on Lenders and Borrowers Prudential lent Rodda Paint Company $1,500,000 on April 1, 20X5. The loan plus interest of 10 percent is payable on April 1, 20X6. 1. By using the balance sheet equation format, prepare an analysis of the impact of the transaction on both Prudential's and Rodda's financial position on April 1, 20X5. Show the summary adjust- ments on December 31, 20X5, for the period April 1 to December 31. Prepare an analysis of the transaction that takes place on April 1, 20X6, when Rodda repays its obligation. 2. Prepare adjusting journal entries for Prudential and Rodda on December 31, 20X5. 3. Prepare the entries that Prudential and Rodda would make on April 1, 20X6 when the loan and interest is repaid. These entries should include interest that accumulates between January 1, 20X6 and April 1, 20X6.