Response to the following problem:
A patient gave Popover Hospital a 6 percent, 180-day promissory note on October 1, 20X1, in settlement of an $8,000 account with the hospital. The hospital discounted this note on November 1, 20X1, at a local bank whose discount rate is 9 percent. The hospital closes its books annually on December 31.
Required:
(1) Prepare, in general journal form, all necessary entries with respect to this note for 20X1 and 20X2.
(2) Indicate how all matters relating to this note should be presented in the hospital's 20X1 financial statements.
(3) Prepare, in general journal form, the necessary entry at the maturity date of the note, assuming that the note is dishonored by the patient and the bank makes a protest fee charge of $22.