Vandiver Company had the following select transactions.

Apr. 1, 2017 Accepted Goodwin Company’s 12-month, 12% note in settlement of a $30,000 account receivable.

July 1, 2017 Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note.

Dec. 31, 2017 Accrued interest on all notes receivable.

Apr. 1, 2018 Received principal plus interest on the Goodwin note.

Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect.

Instructions

Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31.