On December 31, 2015, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $264,600 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 12%. Sarasota is much more creditworthy and has various lines of credit at 6%.

Prepare the journal entry to record the transaction of December 31, 2015, for the Sarasota Co.

Assuming Sarasota Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2016.

Assuming Sarasota Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.