Bagby Company loaned Jensen Corporation $9,000 on October 1, 2013. The 8-month note carried a 6% rate of interest.
Required:
a) How will Bagby report the note and interest on its 2013 income statement, balance sheet, and statement of cash flows?
b) How will Bagby report the note and interest on its 2014 income statement and statement of cash flows?

Question

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The Answer of Bagby Company loaned Jensen Corporation $9,000 on October 1, 2013. The 8-month note carried a 6% rate of interest.
Required:
a) How will Bagby report the note and interest on its 2013 income statement, balance sheet, and statement of cash flows?
b) How will Bagby report the note and interest on its 2014 income statement and statement of cash flows?

Bagby Company Loaned Jensen Corporation $9,000 on October 1, 2013