Poole Enterprises loaned $30,000 to Boyd Co. on September 1, 2014, for one year
ID: 2578836 • Letter: P
Question
Poole Enterprises loaned $30,000 to Boyd Co. on September 1, 2014, 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 (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 Boyd Co (2) The adjusting entry at December 31, 2014 (3) The adjusting entry, the collection of the principal balance, and the collection of interest on September 1, 2015 POOLE ENTERPRISES Horizontal Statements Model Equity Retained EarningsRevenueExpense Assets Income Statement Statement of Cash Flow Date Interest Receivable Notes Cash+Receivable Net Income 2. 12/31/14Explanation / Answer
Date Cash Notes Receivable Interest Receivable Retained Earnings Revenue Expense Net Income Statement of Cash Flow 1. 9/1/14 -30000 30000 -30000 IA 2. 12/31/14 800 800 800 800 3. 9/1/15 1600 1600 1600 1600 09-01-2015 30000 -30000 30000 IA 09-01-2015 2400 -2400 2400 OA