On May 2, Pharoah Company lends $8,000 to Chang, Inc., issuing a 6-month, 8% note. On the November 2, maturity date, Chang indicates that it cannot pay. Parts b and c are independent assumptions.

(a)

Prepare the entry to record the issuance of the note.

Date	Account Titles and Explanation	Debit	Credit
May 2

(b)

Prepare the entry to record the dishonor of the note, assuming that Pharoah Company expects collection will occur.

Date	Account Titles and Explanation	Debit	Credit
Nov. 2

(c)

Prepare the entry to record the dishonor of the note, instead of assuming that Pharoah Company does not expect collection in the future.

Date	Account Titles and Explanation	Debit	Credit
Nov. 2

Answer rating: 100% (QA)

Question Date May 2 Nov 2 Nov 2 Account Titles and Explanation Notes Receivable Cash To r... View the full answer