Below Are Two Related Transactions for Tweet Corporation

question 44

Essay

Below are two related transactions for Tweet Corporation. The annual accounting period ends December 31. For each date listed, give the required entry in journal format.
a. October 1, 20A-- Tweet Corporation Borrowed $15,000 and signed a note providing for 10% interest. The principal and interest are due in one year (on September 30, 20B).
b. December 31, 20A--end of the annual accounting period. (If no entry is required, explain why).

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Definitions:

Legal Consequences

The results or penalties that arise from actions or decisions that have legal implications or breaches of law.

Procedural Unconscionability

A legal term referring to a situation where the process of making a contract is so unfair or oppressive to one party that it affects the validity of the agreement.

Nonperformance

The failure to fulfill a duty or obligation, particularly in terms of meeting the terms of a contract.

Disaffirm The Contract

The legal right of a party to renounce or revoke consent to a contract, typically due to incapacity or misrepresentation.