Rainey Enterprises loaned $30,000 to Small Co. on June 1, 2018, for one year at

Question

Rainey Enterprises loaned $30,000 to Small Co. on June 1, 2018, for one year at 8 percent interest Required Show the effects of the following transactions in a horizontal statements In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (A), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. (Do not round intermediate calculations and round final answers to nearest doller amount. Enter any decreases to. account balances and cash outflows with a minus sign.) (1) The loan to Small Co (2) The adjusting entry at December 31, 2018. (3) The adjusting entry and collection of the note on June 1, 2019

Explanation / Answer

Date Cash + Notes rec.+ Int. Rec. = Ret. Earning Revenue- Expense= Net income Cashflow Statement 1 01.06.18 -30000 30000 -30000 Operating activities 2 31.12.18 1400 1400 1400 1,400 NA 3 01.06.19 30000 -30000 30000 Operating activities 01.06.19 1400 -1400 1400 Operating activities 01.06.19 1000 1000 1000 1,000 1000 Operating activities

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