Question
On November 1, 2018,AccustartInc. accepted a three-month,8%, $57,600note fromUliInc. in settlement of its account. Interest is due on the first day of each month, starting
On November 1, 2018,AccustartInc. accepted a three-month,8%, $57,600note fromUliInc. in settlement of its account. Interest is due on the first day of each month, starting December 1. Both companies' year ends are December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1.) journal entries forAccustartover the term of the note. the note is collected in full on the maturity date.
2.) journal entries forUliover the term of the note. the note is paid in full on the maturity date.
3.) Assume that, instead of honouring the note at maturity,Ulidishonours it. the necessary journal entry onAccustart's books at the maturity date, February 1, 2019, assuming that eventual collection of the note is (1) expected, and (2) not expected. Interest was last paid byUlion January 1.
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