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Rainey Enterprises looned $25,000 to Small Co. on June 1. Year 1, for one year at 5 percent interest. Required Show the effects of the
Rainey Enterprises looned $25,000 to Small Co. on June 1. Year 1, for one year at 5 percent interest. Required Show the effects of the following transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA). Investing activity (A), or financing activity (FA). Not all cells require input. Do not found intermediate calculations. Round your final answers to the nearest whole dollar) (1) The loan to Small Co. (2) The adjustment at December 31, Year 1, (3) The adjustment and collection of the note on June 1, Year 2 The loan to Small Co. The adjustment at December 31, Year 1 The adjustment and collection of the note on June 1. Year 2. RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities Date Stockholders Equity Rotalned Earnings Notes Recolvable Cash Interest Recolvable Revenue Expense Net Inca GM/Year 1 12/31/Year 1 6/1/Year 2 Adjustment 8/1/Year 2 Note Collection . RAINEY ENTERPRISES Horizontal Statements Model Income Statement Liabilities Statement of Cash Flows + Stockholders Equity Retained Earnings Interest eceivable Revenue Expense = Net Income HIIHII 111 #11 111
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