Question - On December 31, 2015. Blue Co. performed environmental consulting services for Hayduke Co. Havduke was short of cash, and Blue Co. agreed to accept a $324,900 zero-interest-bearing note due December 31, 2017, as payment in full. Havduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Blue is much more credit worthy and has various lines of credit at 6%.
(a) Prepare the journal entry to record the transaction of December 31, 2015, for the Blue Co.
(b) Assuming Blue Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2016.