On May 2, Ottawa Company lends $7,600 to Cortland, Inc., issuing a 6-month, 8% note. At the

Question:

On May 2, Ottawa Company lends $7,600 to Cortland, Inc., issuing a 6-month, 8% note. At the date, November 2, Cortland indicates that it cannot pay.

Instructions
(a) Prepare the entry to record the issuance of the note.
(b) Prepare the entry to record the dishonor of the note, assuming that Ottawa Company expects collection will occur.
(c) Prepare the entry to record the dishonor of the note, assuming that Ottawa Company does not expect collection in the future.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...