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Problem 7 - 5 A ( Algo ) Analyzing and journalizing notes receivable transactions LO C 2 , C 3 , P 4 The following

Problem 7-5A (Algo) Analyzing and journalizing notes receivable transactions LO C2, C3, P4
The following transactions are from Ohlm Company.
Note: Use 360 days a year.
Year 1
December 16 Accepted a(n) $10,600,60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable.
December 31 Made an adjusting entry to record the accrued interest on the Todd note.
Year 2
February 14 Received Todds payment of principal and interest on the note dated December 16.
March 2 Accepted a(n) $6,600,7%,90-day note in granting a time extension on the past-due account receivable from Midnight Company.
March 17 Accepted a $3,800,30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.
April 16 Privet dishonored her note.
May 31 Midnight Company dishonored its note.
August 7 Accepted a(n) $8,800,90-day, 12% note in granting a time extension on the past-due account receivable of Mulan Company.
September 3 Accepted a $2,940,60-day, 10% note in granting Noah Carson a time extension on his past-due account receivable.
November 2 Received payment of principal plus interest from Carson for the September 3 note.
November 5 Received payment of principal plus interest from Mulan for the August 7 note.
December 1 Wrote off the Privet account against the Allowance for Doubtful Accounts.
Required:
1-a. First, complete the table below to calculate the interest amount at December 31, Year 1.
1-b. Use the calculated value to prepare your journal entries for Year 1 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for Year 2 transactions.
2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?

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