Problem:
On September 1, 2014, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is December 31. Rozell paid the note and interest on the due date.
Required:
Question 1: Who is the maker and who is the payee of the note?
Question 2: What is the maturity date of the note?
Question 3: Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:
a. September 1, 2014
b. December 31, 2014
c. March 1, 2015
Note: Please show the work not just the answer.