Rainey Enterprises loaned $40,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. 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. Round your final answers to the nearest whole dollar.)

1. (1) The loan to Small Co.
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.

Journal entry worksheet

• Record entry for loan provided to small Co. for one year at 6 percent interest.

Note: Enter debits before credits.

Journal entry worksheet

• Record entry for loan provided to small Co. for one year at 6 percent interest.
• Record adjusting entry for interest revenue at December 31st Year 1.
• Record adjusting entry for interest revenue at June 1st Year 2.
• Record entry for collection of note and interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 01

• Balance Sheet

  Income Statement

  Assets

  =

  Liabilities

  +

  Equity

  Event

  Cash

  +

  Note receivable

  +

  Interest receivable

  =

  Retained earnings

  Revenue

  -

  Expenses

  =

  Net income

  1

  $

  +

  $

  +

  =

  +

  -

  =

  2

  +

  +

  $

  =

  +

  $

  $

  -

  =

  $

  3

  $

  +

  $

  +

  $

  =

  +

  $

  $

  -

  =

  $