GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from King Company Year 1 Dec. 16 Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Clark note. Year 2 Feb. 14 Received Clark's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $7,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Walker Co. 17 Accepted a $18,000, 30-day, 7% note in granting Juan Perez a time extension on her past-due account receivable. Apr. 16 Perez dishonored her note. May 31 Walker Co. dishonored its note. Aug 7 Accepted a $16,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Taylor Co. Sep. 3 Accepted a $17,400, 60-day, 10% note in granting Tony Turner a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Turner for the September 3 note. Nov 5 Received payment of principal plus interest from Taylor for the August 7 note. Dec. 1 Wrote off the Perez account against the Allowance for Doubtful Accounts. Che Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Prepare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tal ensure the accuracy of your entries. View transaction list Journal entry worksheet Feb. 14 Received Clark's payment of principal and interest on the $13,200, 60- day, 12% note dated December 16. The King Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab. Note: Enter debits before credits. Date General Journal Debit Credit Feb 14 Saved blication Problems View transaction list Journal entry worksheet Mar. 2 Accepted an $7,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Walker Co. Note: Enter debits before credits. Date General Journal Debit Credit Mar 02 8 9 Mar. 17 Accepted a $18,000, 30-day, 7% note in granting Juan Perez a time extension on her past-due account receivable. Note: Enter debits before credits Date General Journal Debit Credit Mar 17 View transaction list Journal entry worksheet May 31 Walker Co. dishonored its note. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet Aug. 7 Accepted a(n) $16,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Taylor Co. Note: Enter debits before credits. Date General Journal Debit Credit Aug 07 Journal entry worksheet Nov. 2 Received payment of principal plus interest from Turner for the September 3 note. Note: Enter debits before credits General Journal Debit Credit Date Nov 02 Journal entry worksheet Dec. 1 Wrote off the Perez account against Allowance for Doubtful Accounts. No additional interest was accrued. Note: Enter debits before credits. Date General Journal Debit Credit Dec 01 Dates: King Co. Calculation of interest revenue February 14 - Clark note: Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 --- Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue - Year 2 $ 0
