On June 18, 2015, Woods Co

question 33

Essay

On June 18, 2015, Woods Co. received from one of its customers, Webb Co., a90 day, 12%, $12,000 note receivable, in exchange for contract servicesprovided. Woods Co. has a March 31 year end. Webb Co. honoured the note at maturity. Prepare the entries for the issuance and the maturity of the note.

---

Definitions:

Contractual Defenses

Legal arguments that can be used to challenge the enforceability of a contract, such as incapacity, duress, or fraud.

Surety Relationships

A legal arrangement where a third party (the surety) agrees to take responsibility for the debt or obligation of a borrower if the borrower defaults.

Modification

An alteration or change to an existing agreement or contract.

Surety Agreement

A legal contract where one party (the surety) guarantees the performance, obligations, or debts of another party (the principal) to a third party (the obligee).