Question:
Notes Receivable
On September 1, 2014, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is December 31. Rozell paid the note and interest on the due date.
1. Who is the maker and who is the payee of the note?
2. What is the maturity date of the note?
3. Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:
a. September 1, 2014
b. December 31, 2014
c. March 1, 2015