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Interest Receivable On June 1, 2014, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.

Interest Receivable

On June 1, 2014, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Assume a 360-day year.

Required:

1. Identify and analyze the transaction on MicroTels books on June 1, 2014.

Activity

Accounts

Statement(s)

2. Identify and analyze the adjustment on MicroTels books on June 30, 2014.

Activity

Accounts

Statement(s)

3. Identify and analyze the adjustment on MicroTels books on July 31, 2014, when MaxiDriver repays the principal and interest.

Activity

Accounts

Statement(s)

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