Rainey Enterprises loaned $35,000 to Small Company on June 1, Year 1, for one year at 7 percent interest.

Required

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.

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

REQUIREMENT 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. Round your final answers to the nearest whole dollar.)

(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

REQUIREMENT 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 activity, IA for 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 and cash outflows with a minus sign. Round your final answers to the nearest whole dollar.)

Journal entry worksheet Record entry for loan provided to Small Company for one year at 7 percent interest. Note: Enter debits before credits. Journal entry worksheet Record adjusting entry for interest at December 31 , Year 1. Note: Enter debits before credits. Journal entry worksheet Record adjusting entry for interest at June 1, Year 2. Note: Enter debits before credits. Journal entry worksheet