Agrico, Inc., accepted a 10-month, 13% (annual rate), $4,050 note from one of its customers on May 15, 2016; interest is payable with the principal at maturity.
Required:
a-1. Prepare the horizontal model to record the interest earned by Agrico during its year ended December 31, 2016. (Use amounts with + for increases and amounts with – for decreases.)
a-2. Prepare the journal entry to record the interest earned by Agrico during its year ended December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
b-1. Prepare the horizontal model to record collection of the note and interest at maturity. (Use amounts with + for increases and amounts with – for decreases.)
b-2. Prepare the journal entry to record collection of the note and interest at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)