Problem 7-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $11,100, 60-day, 78 note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,400, 71, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $2,500, 30-day, 78 note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May 31 Midnight Co. dishonored its note. Aug. 7 Accepted a(n) $8,050, 90-day, 118 note in granting a time extension on the past-due account receivable of Mulan Co. Sep. Nov. Nov. Dec. 3 Accepted a(n) $2,670, 60-day, 98 note in granting Noah Carson a time extension on his past-due account receivable. 2 Received payment of principal plus interest from Carson for the September 3 note. 5 Received payment of principal plus interest from Mulan for the August 7 note. 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 Ohim pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables? First, complete the table below to calculate the interest amount at December 31, Year 1. Total Through Maturity Interest Recognized December 31 Principal Rate (%) Time Total interest Journal entry worksheet Accepted a $11,100, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Dec 16 Journal entry worksheet Made an adjusting entry to record the accrued interest on the Todd note. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 Total Through Maturity Midnight Co. Note - March 2, Year 2 A. Privet Note - March 17, Year 2 N. Carson Mulan Note - Note - August 7, Year September 3. 2 2017 Principal Rate (%) Time Total interest Use those calculated values to prepare your journal entries for Year 2 transactions. View transaction list 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? The pledge of receivables is shown in the Received Todd's payment of principal and interest on the note dated December 16. Note: Enter debits before credits. General Journal Debit Credit Date Feb 14 Journal entry worksheet 3 4 5 6 7 8 9 10 > Accepted a(n) $6,400, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. Note: Enter debits before credits. General Journal Debit Credit Date Mar 02 ournal entry worksheet
