Exercise 7-12 Notes receivable transactions LO P4 Following are selected transactions of Danica Company for 2016 and 2017. 2016 Dec. 13 Accepted a $26,000, 45-day, 10% 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. 2017 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $20,000, 8%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $18,000, 30-day, 8% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable Apr. 16 H. Cheng dishonored his note when presented for payment. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Answer is not comnlete General Journal M Lee Note Tomas Co Note H Cheng Note Complete the table to calculate the interest amounts mount Interest Total Through Maturity Accrued at December Recognized January 27 26,000 26,000 10% 18/360 $26,000 Principal Rate (%) Time Total interest $ 10% 27/360 20 10% 45/360 Journal entry worksheet 2 4 Received Lee's payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared. Note: Enter debits before credits. Date General Journal Debit Credit Jan 27, 2017 Cash 26,033 otes receivable-H. Cheng Record entry Clear entry View general journal Journal entry worksheet 4 Accepted a $20,000, 896, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. Note: Enter debits before credits. Date General Journal Debit Credit Mar 03, 2017 Record entry Clear entry View general journal Journal entry worksheet 2 4 6 granting H. Cheng a Accepted a $18,000, 30-day, 8% note dated March 17 in time extension on his past-due account receivable Note: Enter debits before credits. Date General Journal Debit Credit Mar 17, 2017 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 6 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. Note: Enter debits before credits. Date General Journal Debit Credit May 01, 2017 Record entry Clear entry View general journal Journal entry worksheet 1 2 4 6 Received the Tomas payment for principal and interest on the note dated March 3 Note: Enter debits before credits. Date General Journal Debit Credit Jun 01, 2017 Record entry Clear entry View general journal
