Grigory Rasputin operates a proprietorship. Sales have been very good in recent months, resulting in a substantial amount of cash on hand. However, Grigory Rasputin knows that in six months, he will have to purchase more inventory for the next season. He realizes that if he leaves he cash in the bank, he will receive an insignificant amount of interest. He therefore decides to loan his excess cash of $26,000 to his brother-in-law, charging interest at an annual rate of 4%. Assume the proprietorship has a year-end of December 31.

Required 1. Record the entry when issuing the loan on August 15. 2. Record any entries related to the loan as of December 31. 3. Record the deposit of the repayment of the loan with interest on February 15. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transactions that have more than one debit or credit, enter the accounts in alphabetical order.

Date	Account Title and Explanation	Debit	Credit
Aug 15	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading		Answer
	To record loan to brother-in-law at 4% interest.
Dec 31	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading		Answer
	To Record interest earned on short-term loan.
Feb 15	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading		Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading		Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldGain on Sale of InvestmentIncome Tax ExpenseIncome Tax PayableInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLong-Term Investments - Available for SaleLong-Term Investments - Held to MaturityLoss on Sale of InvestmentPreferred StockPrepaid RentRent ExpenseSalaries ExpenseSales RevenueShort-Term Investments - Available for SaleShort-Term Investments - Held to MaturityShort-Term Investments - Trading		Answer
	Record collection of loan principal and interest accrued.