Tardif Company adjusts its books monthly. On September 30, 2014, notes receivable include the following:

Interest is payable on the first day of each month for notes with terms of one year or longer. Interest is payable at maturity for notes with terms less than one year. In October, the following transactions were completed:
Oct. 1 Received payment of the interest due from RJF Inc.
1 Received payment of the interest due from Imaging Ltd.
31 Received notice that the Dragon Co. note had been dishonoured. (Assume that Dragon is expected to pay in the future.)
31 Collected the amount owing from Resolute Co.
Instructions
(a) Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2014.
(b) Record the October transactions and the October 31 adjusting entry for accrued interest receivable.
(c) Enter the balances at October 1 in the receivables accounts, and post the entries to the receivables accounts.
(d) Show the balance sheet presentation of the interest and notes receivable accounts at October 31.
(e) How would the journal entry on October 31 be different if Dragon were not expected to pay in the future?

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Maker RJF Inc. Resolute Co. Imaging Ltd. Dragon Co MGH Corp Principal $19,000 17,000 17,500 6,000 20,500 Issue Date Aug. 1, 201.3 Mar. 31, 2014 May 31, 2014 Aug. 31, 2014 Sept. 30, 2014 Interest 4.5% 5.0% 5.5% 8.5% 6.0% 2.5 years 7 months 18 months 2 months 16 months