Accounting Homework Q

The following transactions occurred during 2020 and 2021 for Rona following the sale of merchandise to JP Morgan for $75,000 on credit. Rona's fiscal year-end is December 31. Assume 28 days in the month of February.

01-Oct-20	JP morgan indicated they won't be able to pay the full balance of the account until early next year. They agree to pay $15,000 cash and convert the balance of the amount owed to a 5-month, 8% note receivable.
31-Dec-20	Prepare the year-end interest adjustment for the note receivable.
28-Feb-21	JP Morgan dishonour their note at maturity.

To do...

1. Prepare the journal entries for the transactions listed above. Round to 2 decimal places. Narratives are not required. Space has been provided to show interest calculations.

	General Journal
Date	Account Titles and Explanation	Debit	Credit