Bank of Houston loaned Anderson Paint Company $1,400,000 on May 1, 20X0. The loan plus interest of 8% is payable on May 1, 20X1. Requirements 1. Using the balance sheet equation format, prepare an analysis of the impact of the transaction on both Bank of Houston's and Anderson's financial position on May 1, 20X0. Show the summary adjustments on December 31, 20X0, for the period May 1 to December 31. Prepare an analysis of the transaction that takes place on May 1, 20X1, when Anderson repays its obligation. 2. Prepare adjusting journal entries for Bank of Houston and Anderson on December 31, 20X0. 3. Prepare the entries that Bank of Houston and Anderson would make on May 1, 20X1 when the loan and interest is repaid. These entries should include interest that accumulates between January 1, 20X1 and May 1, 20X1. Now prepare the analysis for Anderson Paint Company. (Use parentheses or a minus sign to show a decrease in the balance sheet equation component and leave any unused cells blank.) Assets = + Stockholders' Equity Liabilities Accrued Accrued Cash Note Receivable Interest Receivable Note = Payable Interest Payable Interest Expense Interest Revenue 20X0 May 1 = Dec 31 20X1 May 1 Requirement 2. Prepare adjusting journal entries for Bank of Houston and Anderson on December 31, 20X0. (Record debits first, then credits. Explanations are not required.) Prepare Bank of Houston's adjusting journal entry on December 31, 20X0. Date Dec 31 Accounts Debit Credit