Question
As a result, in June 2020, they formed FastWater, Inc. by contributing $11,000 in cash in exchange for all of the companys 1,100 shares of
As a result, in June 2020, they formed FastWater, Inc. by contributing $11,000 in cash in exchange for all of the companys 1,100 shares of stock. FastWater, Inc. also signed a loan for $150,000 in cash, with principal payable at the rate of $15,000 per year over ten years and interest payable at a rate of 5.5% on the outstanding balance as of the beginning of the loans year. The loan agreement was signed on June 30, 2020, and provided that both principal and interest would be paid only once a year on June 30.
Show the balance sheet and cash flow entries for the above.
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