137.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...

137.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?

138.Vance Company accepted a month, 7% promissory note from a customer, Adams Company, on September 1, 2013, in exchange for $12,000 of services that Vance performed. Prepare general journal entries for the following:


a) acceptance of the note on September 1, 2013
b) accrual of interest on December 31, 2013
c) collection of principal and interest on August 31, 2014