Question
Following are selected transactions Danica Company for 2014 and 2015. 2014 Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda
Following are selected transactions Danica Company for 2014 and 2015. |
2014 |
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. | |
2015 |
Jan. | 27 | Received Lee's payment for principal and interest on the note dated December 13. |
Mar. | 3 | Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. |
17 | Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable. | |
Apr. | 16 | H. Cheng dishonors 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. |
First, complete the table below to calculate the interest amounts. (Do not round your intermediate calculations. Use 360 days a year.) |
Thomas co note:
Principal:
Rate (%):
Time:
Total interest:
H. Cheng Note:
Principal:
Rate (%):
Time:
Total interest:
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