Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2016, for one year at 6 percent interest.
a. Record these general journal entries for Rainey Enterprises:
(1) The loan to Small Co.
(2) The adjusting entry at December 31, 2016.
(3) The adjusting entry and collection of the note on June 1, 2017.
b. Show the effects of the three above transactions in a horizontal statements model like the one 0shown below: