Hines Enterprises Loaned $4,000 to Baldwin Company on October 1,2010,for

question 87

Essay

Hines Enterprises loaned $4,000 to Baldwin Company on October 1,2010,for one year at 8% interest.
Required:
Show the effects on the financial statements model (below)of
a)the loan to Baldwin
b)the adjusting entry at December 31,2010
c)accrual of interest and collection of the note and related interest on October 1,2011
Indicate dollar amounts of increases and decreases.For cash flows,indicate whether the item is an operating activity (OA),investing activity (IA),or financing activity (FA).If an element is not affected by an event,indicate with NA.

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Definitions:

Government-sponsored

Programs, initiatives, or projects that are funded or promoted by a governmental entity.

Customer-oriented

An approach or strategy that focuses primarily on meeting the needs and expectations of customers.

Retailer-sponsored Cooperatives

Organizations owned and operated by a group of retailers aimed at improving purchasing power and marketing capabilities through collective efforts.

Franchising

A business model that allows an individual or group to operate a business using the branding and business structure of an established company.