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Required information Skip to question [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $20,000,
Required information
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[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 | Accepted a $20,000, 45-day, 6% note in granting Miranda Lee a time extension on her past-due account receivable. |
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December 31 | Prepared an adjusting entry to record the accrued interest on the Lee note. |
January 27 | Received Lee's payment for principal and interest on the note dated December 13. |
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March 3 | Accepted a $14,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. |
March 17 | Accepted a $18,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable. |
April 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 your journal entries.
Note: Do not round intermediate calculations. Use 360 days a year.
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