Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (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. Date RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Assets Notes KOVA Interest = Liabilities + Stockholders' Equity Revenue Income Statement Expenses Net Income Statement of Cas Flows
Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. (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. Date RAINEY ENTERPRISES Horizontal Statements Model Balance Sheet Assets Notes KOVA Interest = Liabilities + Stockholders' Equity Revenue Income Statement Expenses Net Income Statement of Cas Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Rainey Enterprises loaned $20,000 to Small Company on June 1, Year 1, for one year at 6 percent interest.
Required
Show the effects of the following transactions in a horizontal statements model. In the Statement of Cash Flows column, indicate
whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the
event, leave the cell blank.
Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
(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.
3.
Date
1.
6/1/Y1
2. 12/31/Y1
3. 6/1/72 (Adjusting entry)
6/1/Y2 (Collection of the note)
Cash
+
+
+
+
Assets
Notes
Receivable
+
+
+
+
+
RAINEY ENTERPRISES
Horizontal Statements Model
Balance Sheet
Interest
Receivable
=
Liabilities +
+
+
+
+
Stockholders'
Equity
Retained Earnings
Income Statement
Revenue -
Expenses = Net Income
=
Statement of Cas
Flows
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