Following are transactions of Danica Company. Dec. 13 Accepted a $28,000, 45-day, 8% note 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. Exercise 7-13 Notes receivable transactions LO P4 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $20,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 H. Cheng dishonored his note. 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.

First, complete the table below to calculate the interest amounts.

Tomas Co Note

	Total Through
	Maturity
Principal
Rate (%)
Time
Total interest

M Lee Note

	Total Through Maturity	Amount Accrued at December 31	Interest Recognized January 27
Principal
Rate (%)
Time
Total interest

plete the table below to calculate the interest amounts.

H Cheng Note

	Total Through
	Maturity
Principal
Rate (%)
Time
Total interest

General Ledger

• 1 Received Lees payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared.

• 2 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.

• 3 Accepted a $20,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable.

• 4 H. Cheng dishonored his note.

• 5 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.