On June 1, Moon Company determined that it would not be able to pay the account receivable that due to be paid to Gamma Company on that date. Moon was confident that it would have the necessary cash early in the next year. It therefore signed a nine-month, 7% note for the $19,000 that it owed. The interest on this note will be paid when the note matures (becomes due). Gamma Company's fiscal year end is June 30.
Prepare the journal entries associated with this note that would be made by Gamma during the month of June.
Prepare the journal entry to record the receipt of the full amount owed to Gamma Company on March 1.
Prepare the journal entries associated with this note that would be made by Gamma during the month of June.
Prepare the journal entry to record the receipt of the full amount owed to Gamma Company on March 1.