Lissie Company had the following select transactions.

Apr. 1, 2012Accepted Goulding Company's 1-year, 12% note in settlement of a $25,000 account receivable.

July 1, 2012Loaned $15,000 cash to Jenny Lewis on a 9-month, 10% note.

Dec. 31, 2012Accrued interest on all notes receivable.

Apr. 1, 2013Received principal plus interest on the Goulding note.

Apr. 1, 2013Jenny Lewis dishonored its note: Lissie expects it will eventually collect.

Instructions

Prepare journal entries to record the transactions. Lissie prepares adjusting entries once a year on December 31.