Rainey Enterprises loaned $30,000 to Small Company on June 1, Year 1, for one year at 9 percent interest.

Required

1. Record these general journal entries for Rainey Enterprises:
   1. (1) The loan to Small Company.
   2. (2) The adjusting entry at December 31, Year 1.
   3. (3) The adjusting entry and collection of the note on June 1, Year 2.

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

Journal entry worksheet 1 2 3 4 Record entry for loan provided to Small Company for one year at 9 percent interest. Note: Enter debits before credits. Date General Journal Debit Credit 6/1/Year 1 Notes receivable 30,000 Cash 30,000 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B 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 designate operating acti activity, FA for financing activity, and leave blank to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with an final answers to the nearest whole dollar.) Balance Sheet Income Statement Event Assets Stockholders' Equity Retained Earnings Liabilities Statement of Cash Flows Revenue Net Income Expenses Cash Notes Receivable Interest Receivable + 6/1/Y1 12/31/41 = + = + - 6/1/92 6/1/2 + - = + =