On December 31, 2020, Blue Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Blue Co. agreed to accept a $ 281,500 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Blue is much more creditworthy and has various lines of credit at 6%.

(b)

Assuming Blue Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (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.)

Date

Account Titles and Explanation

Debit

Credit

(c)

Assuming Blue Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2022. (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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022
	(To record interest revenue)
	(To record collection of note)

Dec. 31, 2021