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

Required

$2$

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

points

$(1)$ 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.

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References

Required A

Record these general journal entries for Rainey Enterprises: $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$(1)$ 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 $2.$