P$8\mathrm{.}7$A On November $1,2024,$ Sokos Inc. accepted a three$-$month, $9\%,$ $$60,000$ note from Malmo Inc. in settlement of its account. Interest is due on the first day of each month, starting December $1.$ Both companies' year ends are December $31.$ Sokos has few notes receivable and does not use the allowance method.

Instructions

a$.$ Prepare all journal entries for Sokos over the term of the note. Assume that the note is collected in full on the maturity date.

b$.$ Prepare all journal entries for Malmo over the term of the note. Assume that the note is paid in full on the maturity date.

c$.$ Assume that, instead of honouring the note at maturity, Malmo dishonours it$.$ Prepare the necessary journal entry on Sokos's books at the maturity date, February $1,2025,$ assuming that eventual collection of the note is $(1)$ expected, and $(2)$ not expected. Interest was last paid by Malmo on January $1.$