Exercise 7-11 Notes receivable transactions LO C2

Following are selected transactions of Danica Company for 2016.

Dec.		13		Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
		31		Prepared an adjusting entry to record the accrued interest on the Lee note.

Complete the table to calculate the interest amounts at December 31^st and use the calculated value to prepare your journal entries. (Do not round your intermediate calculations. Use 360 days a year.)

• Interest Amounts
• General Journal

Complete the table to calculate the interest amounts at December 31^st.

		Interest
	Total Through	Recognized
	Maturity	December 31
Principal
Rate (%)
Time
Total interest