3) The Pilon Company entered into a Note Payable to received $120000 on January 1, 2018. The Note Payable is due on December 31, 2022 for $149542. Required (worth 5 marks):

a) Prepare ALL the journal entries required for the year 2018 (assume a fiscal year end of December 31).

b) On January 1, 2020, The Pilon Company entered into bankruptcies protection. Pilon agreed to pay $50000 on its Note Payable and would be released from all future obligations. Assuming that Pilon pays the $50000, prepare the journal entry to record the debt settlement.