Question: On May 2 McLain Company lends 9 000 to Chang Inc

On May 2, McLain Company lends $9,000 to Chang, Inc., issuing a 6-month, 9% note. At the maturity date, November 2, Chang indicates that it cannot pay.

Instructions
(a) Prepare the entry to record the issuance of the note.
(b) Prepare the entry to record the dishonor of the note, assuming that McLain Company expects collection will occur.
(c) Prepare the entry to record the dishonor of the note, assuming that McLain Company does not expect collection in the future.


View Solution:


Sale on SolutionInn
Sales7
Views827
Comments
  • CreatedJanuary 30, 2014
  • Files Included
Post your question
5000