Part 2: Notes & Interest Receivable 3) On July 31, 2020, Algarve Inc. lends $60,000 to Fenway Co. for 6 months. The note has a 5% annual interest rate with all principal and interest to be paid on January 31, 2021. a. Prepare the journal entry Algarve Inc. records on 7/31/2020? 60,000 07/31/2020 Notes Receivable Accounts Receivable Algarve Inc 60,000 b. What adjusting journal entry is required to accrue for interest revenue earned through December 31, 2020 12/31/2020 c. How does posting the journal entry in question 3b affect the accounting equation? d. If Algarve Inc. does not make the adjusting journal entry in 3b, what is the effect on the financial statements? (list all effects) e. On January 31, 2021, Fenway Co. pays all principal and interest owed to Algarve Inc. What journal entry does Algarve Inc. make to record the collection