GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Gonzalez Company. Year 1 Dec. 16 Accepted a $15,600, 60-day, 100 note in granting Lindsey Martin a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Martin note. Year 2 Feb. 14 Received Martin's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $10,000, 100, 90-day note in granting a time extension on the past-due account receivable from Hall Co. 17 Accepted a $4,800, 30-day, 78 note in granting Carlos Sanchez a time extension on her past-due account receivable. Apr. 16 Sanchez dishonored her note. May 31 Hall Co. dishonored ita note. Aug. 7 Accepted a $14,000, 90-day, 108 note in granting a time extension on the past-due account receivable of Mitchell Co. Sep. 3 Accepted a $6,600, 60-day, 108 note in granting Than Nguyen a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Nguyen for the September 3 note. Nov. 5 Received payment of principal plus interest from Mitchell for the August 7 note. Dec. 1 Wrote off the Sanchez account against the Allowance for Doubtful Accounts. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Gonzalez Co. Calculation of interest tab - Use the interest formula (P xRxT) to verify the amount of interest recorded in your entries. 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 Interes ensure the accuracy of your entries. View transaction list Journal entry worksheet Feb. 14 Received Martin's payment of principal and interest on the $15,600, 60-day, 10% note dated December 16. The Gonzalez 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 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 ensure the accuracy of your entries. View transaction list Journal entry worksheet Mar. 2 Accepted an $10,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Hall Co. Note: Enter debits before credits General Journal Debit Credit Date Mar 02 View transaction list Journal entry worksheet Apr. 16 Sanchez dishonored her note. Note: Enter debits before credits. Date General Journal Debit Credit Apr 16 Record entry Clear entry View general Journal Prev 1 of 1 !!! Next Journal entry worksheet May 31 Hall Co. dishonored its note Note: Enter debits before credits. General Journal Debit Credit Date May 31 Record entry Clear entry View general journal Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Enter the principal amount, Interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance. Dates: Jan 01 to: Dec 31 Gonzalez Co. Calculation of interest revenue February 14 - Martin 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 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
