Morton Company had the following select transactions.

Apr. 1, 2014 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable.

July 1, 2014 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note.

Dec. 31, 2014 Accrued interest on all notes receivable.

Apr. 1, 2015 Received principal plus interest on the Remington note.

Apr. 1, 2015 Jenny Green dishonored its note: Morton expects it will eventually collect.

Instructions

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