Question - On December 31, 2015, Pronghorn Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Pronghorn Co. agreed to accept a $324,900 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%. Pronghorn 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 Pronghorn Co.
b. Assuming Pronghorn Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2016.
c. Assuming Pronghorn Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.