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Rainey Enterprises loaned $20,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest.
Required:
Show the effects of the following transactions in a horizontal statements. Indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA).
a. The loan to Small Co.
b. The adjusting entry at December 31, Year 1.
c. The adjusting entry and collection of the note on June 1, Year 2.
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Rainey Enterprises loaned $20,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest...
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