.On December 31, 2025, Splish Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and
Splish Co. agreed to accept a $320,800 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat
of a credit risk and typically borrows funds at a rate of 10%. Splish is much more creditworthy and has various lines of credit at 6%.
ANSWER C
Assuming Splish Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2027. (If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is
entered. Do not indent manually. List all debit entries before credit entries.)
