Refer to the previous exercise.

Required:

Determine the financial statement effects for each of the following transactions:

(a) issuance of the note on November 1, 2011,

(b) impact of the adjusting entry at December 31, 2011, and

(c) the payment of the note and interest on April 30, 2012. Indicate the accounts affected, amounts, and direction of the effects ( + for increases and - for decreases) on the accounting equation. Use the following headings:

Transcribed Image Text:

Date Assets Liabilities Shareholders' Equity