May 1, 2017 Accepted Crane plcs 12-month, 12% note in settlement of a 16,000

account receivable.

July 1, 2017 Loaned 25,000 cash to Sam Howard on a 9-month, 10% note.

Dec. 31, 2017 Accrued interest on all notes receivable.

Apr. 1, 2018 Sam Howard dishonored its note; Bieber expects it will eventually collect.

May 1, 2018 Received principal plus interest on the Crane note.

Instructions

Prepare journal entries to record the transactions. Bieber prepares adjusting entries once

a year on December 31