On December 31, 2012, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $265,900 zero-interest-bearing note due December 31, 2014, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.

Prepare the journal entry to record the transaction of December 31, 2012, for the Ed Abbey Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) December 31st 2012-- Account titles and explanation debit credit ---------------------------------------- ------------ ----------------------- Assuming Ed Abbey Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2013. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) December 31st, 2013 Account titles and Explanation debits credits ---------------------------------------- ----------- ---------------------- Assuming Ed Abbey Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) December 31st 2014 Account titles and Explanations debits credits ----------------------------------------- ------------ --------------------