On March 1, 2014, Tundra Trees Company purchased equipment from Edworthy Equipment Dealership in exchange for a seven-month, 8%, $30,000 note payable. Interest is due at maturity. Tundra Trees has a July 31 fiscal year end. Edworthy has a May 31 fiscal year end. Both companies adjust their accounts annually. Tundra honours the note at maturity.

Instructions

(a) For Tundra Trees, record all transactions related to the note.

(b) For Edworthy Equipment, record all transactions related to the note. Assume the cost of the equipment to Edworthy was $18,000.