On December 31, 2012, Tran Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Tran Co. agreed to accept a $100,000 zero-interest-bearing note due December 31, 2014, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 15%. Tran is much more creditworthy and has various lines of credit at 8%.

Instructions
(a) Prepare the journal entry to record the transaction of December 31, 2012, for Tran Co.
(b) Assuming Tran Co.’s fiscal year-end is December 31 prepare the journal entry for December 31, 2013.
(c) Assuming Tran Co.’s fiscal year-end is December 31 prepare the journal entry for December 31, 2014.