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Question - On April 1, Pan Company lends $1,000,000 to Da Inc., and receives a 6-month, 12% note issued by Da Inc. At the maturity date, October 1, Da Inc. indicates that it cannot pay.
(1) Make the entry to record the issuance of the note.
(2) Make the entry to record the dishonor of the note, assuming that Pan Company expects that Da Inc. will be able to pay in the near future.
(3) Make the entry to record the dishonor of the note, assuming that Pan Company expects that Da Inc. will not be able to pay in the future.
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