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July 1 Hala Catering accepted a 5%, 3-month $8,400 note dated July 1 from VIP Productions for the balance due on account July 31 Oct

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July 1 Hala Catering accepted a 5%, 3-month $8,400 note dated July 1 from VIP Productions for the balance due on account July 31 Oct 1 Hala Catering accrued interest on the Joly 1 note from VIP Productions Collected the VIP Productions note in full. Interest was correctly accrued on July 31, August 31, and September 30, Assume Instead, that the note is dishonored and that no interest has been accrued. Hala Catering expects VIP Productions to eventually pay the amount owed, Oct 1 Prepare journal entries to record the above events: (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually Date Account Titles and Explanation Debit Credit July 1 July 31 Oct 1 To record the settlement of note) Oct 1 To record dishonored notel

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