On December 31, 2020,WindsorCo. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, andWindsorCo. agreed to accept a $281,500zero-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 of11%.Windsoris much more creditworthy and has various lines of credit at6%.

a) Prepare the journal entry to record the transaction of December 31, 2020, for theWindsorCo.

b) AssumingWindsorCo.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2021.

c) AssumingWindsorCo.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.