Problem 9-5A (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) $13,700, 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) $7,300, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company.
March 17	Accepted a $2,300, 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) $7,250, 90-day, 8% note in granting a time extension on the past-due account receivable of Mulan Company.
September 3	Accepted a $2,410, 60-day, 12% 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?

First, complete the table below to calculate the interest amount at December 31, Year 1. 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