GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Clark Company. Year 1 Dec. 16 Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Lee note. Year 2 Feb. 14 Received Lee's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. 17 Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Apr. 16 Allen dishonored her note. May 31 Taylor Co. dishonored its note. Aug. 7 Accepted a $12,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Carter Co. Sep. 3 Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable. ved payment of principal plus interest from Taylor for the September 3 note. Nov. 5 Received payment of principal plus interest from Carter for the August 7 note. Dec. 1 Wrote off the Allen 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 Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. Journal entry worksheet Feb. 14 Received Lee's payment of principal and interest on the $14,400, 60- day, 8% note dated December 16. The Clark Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab. Note: Enter debits before credits. General Journal Debit Credit Date Feb 14 Journal entry worksheet Sept. 3 Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Sep 03 Journal entry worksheet Nov. 2 Received payment of principal plus interest from Taylor for the September 3 note. Note: Enter debits before credits. General Journal Debit Credit Date Nov 02 Journal entry worksheet Mar. 2 Accepted an $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. Note: Enter debits before credits. Date General Journal Debit Credit Mar 02 Journal entry worksheet Mar. 17 Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Mar 17 Journal entry worksheet Apr. 16 Allen dishonored her note. Note: Enter debits before credits. General Journal Debit Credit Date Apr 16 Journal entry worksheet
