On September 1, 2012, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an accounts receivable. Dougherty's year-end is December 31. Rozelle paid the note and interest on the due date.

Required

1. Who is the maker and who is the payee of the note?

2. What is the maturity date of the note?

3. Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:

a. September 1, 2012

b. December 31, 2012

c. March 1, 2013