Question

i need help finishing the chart

Exercise 5-11 Accounting for notes receivable LO 5-4 Rainey Enterprises loaned $30,000 to Small Co, on June 1, 2018, for one year at 5 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 (IA), 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 dollar 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 Date Statement of Cash Flow Answer is not complete. RAINEY ENTERPRISES Horizontal Statements Model = Equity Income Statement Income Interest Retained Revenue - Expense = Receivable 0 0 00 0- 1,050 1,050 0 0 0 0 + Cash Assets Notes Receivable 30,000 + ol: (30,000) (30,000) 6/1/18 12/31/18 (30,000) 0 Net Income 0 1,050 0 0 . O 30,000 1,400 OA 6/1/19 6/1/19 6/1/19 0

Answer 1

	Date	Cash	+	Note receivable	+	Interest receivable	=	Retained earnings	Revenue	-	Expense	=	Net income	Statement of cashflows
1	06/01/2018	(30,000)	+	30,000	+	-	=	-	-	-	-	=	0	(30,000)	IA
2	12/31/2018	-	+	-	+	875	=	875	875	-	-	=	875	-		(30000*5%*7/12)	interest accrued for 7 months.
3	06/01/2019	$31,500	+	(30,000)	+	-875	=	625	625	-	0	=	0	31500	IA
																(3000*5%)	Interest received for 12 months