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Feb. 14 Received Taylor's payment of principal and interest on the $18,000, 60-day, 8% note dated December 16. The Walker Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.
2. Mar. 2 Accepted an $7,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Allen Co.
3. Mar. 17 Accepted a $6,000, 30-day, 7% note in granting Isaac Carter a time extension on her past-due account receivable.
4. Apr. 16 Carter dishonored her note.
5. May 31 Allen Co. dishonored its note.
6. Aug. 7 Accepted a(n) $18,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Turner Co.
7. Sept. 3 Accepted a $9,000, 60-day, 10% note in granting Edward Lee a time extension on his past-due account receivable.
8. Nov. 2 Received payment of principal plus interest from Lee for the September 3 note.
9. Nov. 5 Received payment of principal plus interest from Turner for the August 7 note.
10. Dec. 1 Wrote off the Carter account against Allowance for Doubtful Accounts. No additional interest was accrued.
GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Walker Company. Year 1 Dec. 16 Accepted a $18,000, 60-day, 8% note in granting Greg Taylor a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Taylor note. Year 2 Feb. 14 Received Taylor's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $7,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Allen Co. 17 Accepted a $6,000, 30-day, 7% note in granting Isaac Carter a time extension on her past-due account receivable. Apr. 16 Carter dishonored her note. May 31 Allen Co. dishonored its note. Aug Accepted a $18,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Turner Co. Sep. Accepted a $9,000, 60-day, 10% note in granting Edward Lee a time extension on his past-due account receivable. Nov. Received payment of principal plus interest from Lee for the September 3 note. Nov. 5 Received payment of principal plus interest from Turner for the August 7 note. Dec. 1 Wrote off the Carter account against the Allowance for Doubtful Accounts. 7 3 2 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 Walker 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. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest Prepare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tab ensure the accuracy of your entries. View transaction list Journal entry worksheet Feb. 14 Received Taylor's payment of principal and interest on the $18,000, 60-day, 8% note dated December 16. The Walker 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 Record entry Clear entry View general journal Calculation of Requirement General Journal General Ledger Trial Balance Schedule of Receivables Interest General Ledger Account Cash Account receivable - Other No. Debit Credit No. Debit Credit Date Jan 01 Balance 11,240 Date Jan 01 Balance 38,700 Accounts receivable - E. Lee Accounts receivable - Allen Co. No. Date Debit Credit No. Debit Credit Balance 9,000 Date Jan 01 Balance 7,000 Jan 01 Accounts receivable - Turner Accounts receivable - I. Carter No. Debit Credit No. Debit Credit Date Jan 01 Balance 18,000 Date Jan 01 Balance 6,000 Allowance for doubtful accounts Notes receivable - G. Taylor Debit Credit No. Date Debit Credit No. Balance 8,000 Date Jan 01 Balance 18,000 Jan 01 Interest receivable Merchandise inventory Debit Credit No. Debit Credit No. Date Jan 01 Balance 60 Date Jan 01 Balance 5,000 Owner's Capital No. Date Debit Credit Balance Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest Walker Company Trial Balance December 01, 2019 Account Title Credit $ Debit 11,240 38,700 9,000 7,000 18,000 6,000 Cash Account receivable - Other Accounts receivable - E. Lee Accounts receivable - Allen Co. Accounts receivable - Turner Accounts receivable - 1. Carter Allowance for doubtful accounts Notes receivable - G. Taylor Interest receivable Merchandise inventory Owner's Capital Total 8,000 18,000 60 5,000 105,000 113,000 $ 113,000 $ Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Here are the balances in Accounts and Notes receivable based on your journal entries: Dates: Jan 01 to: Dec 31 9,000 Walker Co. Schedule of Accounts Receivable Accounts receivable - E. Lee Accounts receivable - Allen Co. Accounts receivable - Turner Accounts receivable - 1. Carter Total accounts receivable 7,000 18,000 6,000 40,000 Walker Co. Schedule of Notes Receivable Notes receivable - G. Taylor Total accounts receivable 18,000 18,000 $ General Journal Requirement Calculation of General Ledger Trial Balance Schedule of Receivables 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 Walker Co. Calculation of interest revenue February 14 - Taylor 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 Total interest revenue - Year 2
