Rainey Enterprises loaned $$20,000$ to Small Company on June $1,$ Year $1,$ for one year at $6$ percent interest.

$2$ points

Required

a$.$ Record these general journal entries for Rainey Enterprises:

$(1)$ The loan to Small Company

$(2)$ The adjusting entry at December $31,$ Year $1.$

$(3)$ The adjusting entry and collection of the note on June $1,$ Year $2.$

b$.$ Show the effects of the three given transactions in a horizontal statements model.

Complete this question by entering your answers in the tabs below.

Required $A$

Show the effects of the three given transactions in a horizontal statements model. $($In the Statement of Cash Flows column, use the initials OA to designat investing activity, FA for financing activity, and leave blank to indicate the element is not affected by the event. Enter any decreases to account balances an sign.$)$

$\backslash$table$[[$Event$,$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of$],[$Cash Flows$]]\}],[$Assets$,=,$Liabilities,$+,\backslash$table$[[\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Retained$],[$Earnings$]],$Revenue,$-$ Expense,$\{\{$f$1$c$9$c$19$f$9-$c$477-490$f$-8$d$08-4$ce$5$b$45190$f$4\}$

$\backslash$table$[[$Net$],[$Income$]]\}],[$Cash$,+,\backslash$table$[[$Notes$],[$Recoivable$]],+,\backslash$table$[[$Interest$],[$Receivable$]]],[\frac{6}{1}\frac{?}{Y_1},20,000,+,200,000,+,,=,,+,,,-,,=,,20,000,$IA$],[\frac{12}{31}\frac{?}{1},700,+,,+,,=,,+,700,,-,,=,700,,],[\frac{6}{1}2,21,200,+,(20,000),+,,=,,+,500,,-,,=,500,21,200,IA$