Prepare the journal entry to record the transaction

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Question: On December 31, 2015, Riverbed Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Riverbed Co. agreed to accept a $338,600 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Riverbed is much more creditworthy and has various lines of credit at 6%.

A) Prepare the journal entry to record the transaction of December 31, 2015, for the Riverbed Co.

B) Assuming Riverbed Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2016.

C) Assuming Riverbed Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.

Reference no: EM131755844

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