On August 1, 2018, Cappuccitti Limited accepted a two-month, 4%, $30,000 note from Dil-Dil Inc. in settlement

Question:

On August 1, 2018, Cappuccitti Limited accepted a two-month, 4%, $30,000 note from Dil-Dil Inc. in settlement of its account. Interest is due on the first day of each month, starting September 1. Both companies' year ends are August 31.
Instructions
(a) Prepare all journal entries for Cappuccitti over the term of the note. Assume that the note is collected in full on the date.
(b) Prepare all journal entries for Dil-Dil over the term of the note. Assume that the note is paid in full on the date.
(c) Assume that, instead of honouring the note at Dil-Dil dishonours it. Prepare the necessary journal entry on Cappuccitti's books at the date, October 1, 2018, assuming that eventual collection of the note is
(1) Expected, and
(2) Not expected. Interest was last paid by Dil-Dil on September 1.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...