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.

Question

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The Answer of 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.

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