Imagine that you are the manager of a company playing a game…
Imagine that you are the manager of a company playing a game of Monopoly. For the transaction described below, make the appropriate entries in journal entry format to record the transaction’s effects on the balance sheet, income statement, and cash flow statement. Assume that each transaction is independent of all other transactions listed anywhere in this exam. Your firm took out a mortgage loan in month 9 of year 1 (9/01). The principal of the loan is $100 and the interest rate is 12% per year. The rules of Monopoly specify that interest is owed for the month during which the loan is originated. After receiving cash at the origination of the loan on 9/01, the firm makes no other accounting entries related to the loan during the year. Please make the adjusting entry required at the company’s year-end to deal with this loan. Date Account(s) you debit (left aligned and listed first) Account(s) you credit (indented and listed last) Debit Credit 12/01(adjusting) Notes on answer format: In the portion of the journal entry listing accounts: Identify accounts using the official account abbreviations (use the official account abbreviations which you can review by looking at the images at the bottom of this question. Pay attention to capitalizations!). In the portion of the journal entry listing dollar amounts: Do not use any spaces, commas, or symbols. If there is a place for an answer but you think it should be left blank, enter the number 0.