GHI Company had the following selected transactions during fiscal years 2021 and 2022:

2021

Apr. 1 GHI Company agreed to accept a $30,000, one-year, 6% promissory note in settlement of Singh

Companys unpaid accounts receivable.

July 1 GHI Company loaned $25,000 cash to Jack Nguyen. Jack signed a 9-month, 10% promissory

note in return for the loan.

2022

Apr.1 Singh Company honoured the note from April 1, 2021.

Apr.1 Jack Nguyen dishonoured his note from July 1, 2021. GHI Company expects to ultimately collect

the note in the future.

Note: 1. GHI Company records adjusting entries annually and has a December 31 fiscal year-end.

2. Interest is paid on the maturity date of all notes.

Instructions:

Prepare the necessary journal entries related to the above transactions for fiscal years 2021 and 2022.