Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following selected transactions are from Perez Company. Enter the principal amount, interest rate, and number of days of interest to be recorded for each

The following selected transactions are from Perez Company. Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. (use 360 days for a year)

2016




Dec.
16

Accepted a $21,600, 60-day, 8% note dated this day in granting Susan Allen a time extension on his past-due account receivable.


31

Made an adjusting entry to record the accrued interest on the Allen note.






2017




Feb.
14

Received Allen’s payment of principal and interest on the note dated December 16.
Mar.
2

Accepted a $10,000, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Carter Co.


17

Accepted a $7,800, 30-day, 8% note dated this day in granting Tony Turner a time extension on her past-due account receivable.
Apr.
16

Turner dishonored her note when presented for payment.
May
31

Carter Co. refused to pay the note that was due to Perez Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Carter Co.’s accounts receivable.
July
16

Received payment from Carter Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.
Aug.
7

Accepted a $10,000, 90-day, 8% note dated this day in granting a time extension on the past-due account receivable of Duerr Co.
Sep.
3

Accepted a $12,600, 60-day, 10% note dated this day in granting Spencer Lauer a time extension on his past-due account receivable.
Nov.
2

Received payment of principal plus interest from Lauer for the September 3 note.
Nov.
5

Received payment of principal plus interest from Duerr for the August 7 note.
Dec.
1

Wrote off the Turner account against the Allowance for Doubtful Accounts.


 

total interest revenue agrees with the trial balance Dates: Jan 01 Ohhn Co Calculation of interes February 14-Todd note: Prin        

View transaction list 1 Feb. 14 Received Todd"s payment of principal and interest on the $10,800, 60-day, 8% note dated December 16. The Ohlm Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab. Mar. 2 Accepted a $6,100, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 3 Mar. 17 Accepted a s2,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past- due account receivable. 2.

Step by Step Solution

3.48 Rating (168 Votes )

There are 3 Steps involved in it

Step: 1

Perez Co Calculation of Interest Revenue 14Feb Susan Allen Note Principal 21600 Interest Rate 8 Number of days of interest to be recorded for each note in 2017 Out of 60 Days 15 days is relates to yea... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

20th Edition

1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870

More Books

Students also viewed these Accounting questions

Question

26. LO.6 Discuss the impact of an NOL on the DPAD.

Answered: 1 week ago

Question

Explain the regulation of the secretions of the small intestine.

Answered: 1 week ago