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On May 2, Vaughn Company lends $9,400 to Chang, Inc., issuing a 6-month, 6% note. At the November 2, maturity date, Chang indicates that it
On May 2, Vaughn Company lends $9,400 to Chang, Inc., issuing a 6-month, 6% note. At the November 2, maturity date, Chang indicates that it cannot pay. Parts b and c are independent assumptions. Prepare the entry to record the issuance of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 2 eTextbook and Media List of Accounts Prepare the entry to record the dishonor of the note, assuming that Vaughn Company expects collection will occur. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 2 eTextbook and Media List of Accounts Prepare the entry to record the dishonor of the note, instead assuming that Vaughn Company does not expect collection in the future. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 2
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