Question
I need some help with my accounting homework Question 40 Following are transactions of Danica Company Dec. 13 Accepted a $22,000, 45-day, 9% note in
I need some help with my accounting homework
Question 40
Following are transactions of Danica Company
Dec. 13 Accepted a $22,000, 45-day, 9% note in granting Miranda Lee a time extension on her past-due account receivable.
31 Prepared an adjusting entry to record the accrued interest on the Lee note.
Jan.27Received Lee's payment for principal and interest on the note dated December 13. Mar.
3 Accepted a $16,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.
17 Accepted a $14,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Complete the table to calculate the interest amounts and use those calculated values to prepare journal entries. (Do not round intermediate calculations. Use 360 days a year.)
M Lee Note
Principal ->
Rate ->
Time ->
Total Interest ->
Tomas co note
Principal ->
Rate ->
Time ->
Total Interest ->
H Cheng Note
Principal ->
Rate ->
Time ->
Total Interest ->
Journal Entry Worksheet
1.) Received Lee's payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared.
2.) Accepted a $16,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.
3.)Accepted a $14,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable.
4.)H. Cheng dishonored his note.
5.) Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
6.) Received the Tomas payment for principal and interest on the note dated March 3.
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