Notes Receivable-Honoured and Dishonoured}

Metzler Communications designs and programs a website for a local business. Metzler charges \(\$ 33,000\) for the project and the local business signs a 7\% note January 1, 2018.

\section*{Required:}

1. Prepare the journal entry to record the sale on January 1, 2018.

2. Determine how much interest Metzler will receive if the note is repaid on July 1, 2018.

3. Prepare Metzler's journal entry to record the cash received to pay off the note and interest on July 1, 2018.

4. Prepare the journal entry required on July 1, 2018, if the note is then dishonoured (assume the note will not be collected).