Following are transactions of the Purple Onion Company 2019 Dec 16 Accepted a $28,000, 60 day, 5 5 note dated this day in granting Hal Krueger a time extension on his past due account 31 Made an adjusting entry to record the accrued interest on the Krueger note 31 Closed the Interest income account 2020 Feb 14 Received Kruegers payment for the principal and interest on the note dated December 16 Mar 2 Accepted a $23,000, 3 75 , 90 day note dated this day in granting a time extension on the past due account of ARC Company 17 Accepted a $14,500, 30 day, 4 note dated this day in granting Penny Bobek a time extension on her past due account Apr 16 Bobek dishonoured her note when presented for payment Required a Prepare journal entries to record the Purple Onions transactions (Use 365 days in a year Do not round intermediate calculations Round your answers to 2 decimal places ) b 1 Determine the maturity date of the note dated March 2 b 2 Prepare the entry on the maturity date, assuming ARC Company honours the note (Use 365 days in a year Do not round intermediate calculations Round your answers to 2 decimal places )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Following are transactions of the Purple Onion Company: 2019 Dec. 16 Accepted a $28,000, 60-day, 5.5% note dated this day in granting Hal Krueger a

Following are transactions of the Purple Onion Company:

2019
Dec.	16	Accepted a $28,000, 60-day, 5.5% note dated this day in granting Hal Krueger a time extension on his past-due account.
	31	Made an adjusting entry to record the accrued interest on the Krueger note.
	31	Closed the Interest income account.

2020
Feb.	14	Received Kruegers payment for the principal and interest on the note dated December 16.
Mar.	2	Accepted a $23,000, 3.75%, 90-day note dated this day in granting a time extension on the past-due account of ARC Company.
	17	Accepted a $14,500, 30-day, 4% note dated this day in granting Penny Bobek a time extension on her past-due account.
Apr.	16	Bobek dishonoured her note when presented for payment.

Required: a. Prepare journal entries to record the Purple Onions transactions. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-1. Determine the maturity date of the note dated March 2.

b-2. Prepare the entry on the maturity date, assuming ARC Company honours the note. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)