Accounting for notes receivable
Morris Enterprises loaned $60,000 to Faello Co. on October 1, 2012, for one year at 8 percent interest.
Required
Show the effects of the following transactions in a horizontal statements model like the one shown below.
(1) The loan to Faello Co.
(2) The adjusting entry at December 31, 2012.
(3) The adjusting entry and collection of the note on September 1, 2013.
|
Assets |
= |
Liab. |
+ |
Equity |
Rev. |
Exp. |
= |
Net Inc. |
Cash Flow |
||||||
|
Date |
Cash |
+ |
Notes Rec. |
+ |
Int. Rec. |
= |
Ret. Earn. |