The following selected transactions are from King Company Year 1 Dec 16 Accepted a $13,200, 60 day, 12 note in granting Jean Clark a time extension on his past due account receivable 31 Made an adjusting entry to record the accrued interest on the Clark note Year 2 Feb 14 Received Clarks payment of principal and interest on the note dated December 16 Mar 2 Accepted a $7,000, 6 , 90 day note in granting a time extension on the past due account receivable from Walker Co 17 Accepted a $18,000, 30 day, 7 note in granting Juan Perez a time extension on her past due account receivable Apr 16 Perez dishonored her note May 31 Walker Co dishonored its note Aug 7 Accepted a $16,000, 90 day, 6 note in granting a time extension on the past due account receivable of Taylor Co Sep 3 Accepted a $17,400, 60 day, 10 note in granting Tony Turner a time extension on his past due account receivable Nov 2 Received payment of principal plus interest from Turner for the September 3 note Nov 5 Received payment of principal plus interest from Taylor for the August 7 note Dec 1 Wrote off the Perez account against the Allowance for Doubtful Accounts 2) March 2 Mar 2 Accepted an $7,000, 6 , 90 day note in granting a time extension on the past due account receivable from Walker Co 3) Mar 17 Accepted a $18,000, 30 day, 7 note in granting Juan Perez a time extension on her past due account receivable 4) April 16 Apr 16 Perez dishonored her note 5) May 31 Walker Co dishonored its note 6) Aug 7 Accepted a(n) $16,000, 90 day, 6 note in granting a time extension on the past due account receivable of Taylor Co 7) Sept 3 Accepted a $17,400, 60 day, 10 note in granting Tony Turner a time extension on his past due account receivable 8) Nov 2 Received payment of principal plus interest from Turner for the September 3 note 9) Nov 5 Received payment of principal plus interest from Taylor for the August 7 note 10) Dec 1 Wrote off the Perez account against Allowance for Doubtful Accounts No additional interest was accrued Options for General Journal 000 No journal entry required 101 Cash 103 Account receivable Other 104 Accounts receivable T Turner 105 Accounts receivable Walker Co 106 Accounts receivable Taylor 107 Accounts receivable J Perez 108 Accounts receivable J Clark 109 Allowance for doubtful accounts 110 Notes receivable T Turner 111 Notes receivable Walker Co 112 Notes receivable Taylor 113 Notes receivable J Perez 114 Notes receivable J Clark 118 Interest receivable 120 Merchandise inventory 201 Accounts payable T Turner 202 Accounts payable Walker Co 203 Accounts payable Taylor 204 Accounts payable J Clark 209 Salaries payable 226 Unearned fees 301 Owner's Capital 302 Owner's withdrawals 403 Sales 404 Sales returns and allowances 405 Sales discounts 406 Interest revenue 600 Cost of goods sold 602 Purchases 603 Purchases returns and allowances 604 Purchases discounts 640 Rent expense 652 Freight in 655 Bad debts expense 660 Delivery expense 665 Interest expense 700 Income summary Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Journal tab Prepare the Year 2 journal entries related to the notes and accounts receivable of King Co Calculation of interest tab Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries Verify that total interest revenue agrees with the trial balance Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Feb 14 Received Clark's payment of principal and interest on the $13,200, 60 day, 12 note dated December 16 The King Company does not prepare reversing entries Verify the amount of interest using the CALCULATION OF INTEREST tab Note Enter debits before credits Date General Journal Debit Credit Feb 14 General Ledger Account Cash Account receivable Other No Debit Credit No Debit Credit Date Jan 01 Balance 47,634 Date Jan 01 Balance 42,700 Accounts receivable T Turner Accounts receivable Walker Co No Debit Credit No Date Debit Credit Balance Date Jan 01 Balance 17,400 Jan 01 7,000 Accounts receivable Taylor Debit Credit No No Date Jan 01 Balance 16,000 Accounts receivable J Perez Date Debit Credit Jan 01 Balance 18,000 Allowance for doubtful accounts Notes receivable J Clark No Debit Credit No Debit Credit Date Jan 01 Balance 22,000 Date Jan 01 Balance 13,200 Interest receivable Merchandise inventory Debit Credit No Debit Credit No Date Jan 01 Balance 66 Date Jan 01 Balance 5,000 Owner's Capital No Debit Credit Date Jan 01 Balance 145,000 King Company Trial Balance December 01, 2019 Account Title Credit Cash Account receivable Other Accounts receivable T Turner Accounts receivable Walker Co Debit 47,634 42,700 17,400 7,000 16,000 18,000 22,000 Accounts receivable Taylor Accounts receivable J Perez Allowance for doubtful accounts Notes receivable J Clark Interest receivable Merchandise inventory Owner's Capital Total 13,200 66 5,000 145,000 167,000 167,000 $ Here are the balances in Accounts and Notes receivable based on your journal entries Dates Jan 01 to Dec 31 King Co Schedule of Accounts Receivable Accounts receivable T Turner $ Accounts receivable Walker Co Accounts receivable Taylor Accounts receivable J Perez Total accounts receivable $ 17,400 7,000 16,000 18,000 58,400 King Co Schedule of Notes Receivable Notes receivable J Clark Total accounts receivable 13,200 13,200 $ King Co Calculation of interest revenue February 14 Clark note Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue Year 2 $ 0

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The following selected transactions are from King Company. Year 1 Dec. 16 Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension

The following selected transactions are from King Company. Year 1

Dec.		16			Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Clark note.

Year 2

Feb.	14	Received Clarks payment of principal and interest on the note dated December 16.
Mar.	2	Accepted a $7,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Walker Co.
	17	Accepted a $18,000, 30-day, 7% note in granting Juan Perez a time extension on her past-due account receivable.
Apr.	16	Perez dishonored her note.
May	31	Walker Co. dishonored its note.
Aug.	7	Accepted a $16,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Taylor Co.
Sep.	3	Accepted a $17,400, 60-day, 10% note in granting Tony Turner a time extension on his past-due account receivable.
Nov.	2	Received payment of principal plus interest from Turner for the September 3 note.
Nov.	5	Received payment of principal plus interest from Taylor for the August 7 note.
Dec.	1	Wrote off the Perez account against the Allowance for Doubtful Accounts.

image text in transcribed 2) March 2 Mar. 2 Accepted an $7,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Walker Co.

3) Mar. 17 Accepted a $18,000, 30-day, 7% note in granting Juan Perez a time extension on her past-due account receivable.

4) April 16 Apr. 16 Perez dishonored her note.

5) May 31 Walker Co. dishonored its note.

6) Aug. 7 Accepted a(n) $16,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Taylor Co.

7) Sept. 3 Accepted a $17,400, 60-day, 10% note in granting Tony Turner a time extension on his past-due account receivable.

8) Nov. 2 Received payment of principal plus interest from Turner for the September 3 note.

9) Nov. 5 Received payment of principal plus interest from Taylor for the August 7 note.

10) Dec. 1 Wrote off the Perez account against Allowance for Doubtful Accounts. No additional interest was accrued.

Options for General Journal

000: No journal entry required
101: Cash
103: Account receivable - Other
104: Accounts receivable - T. Turner
105: Accounts receivable - Walker Co.
106: Accounts receivable - Taylor
107: Accounts receivable - J. Perez
108: Accounts receivable - J. Clark
109: Allowance for doubtful accounts
110: Notes receivable - T. Turner
111: Notes receivable - Walker Co.
112: Notes receivable - Taylor
113: Notes receivable - J. Perez
114: Notes receivable - J. Clark
118: Interest receivable
120: Merchandise inventory
201: Accounts payable - T. Turner
202: Accounts payable - Walker Co.
203: Accounts payable - Taylor
204: Accounts payable - J. Clark
209: Salaries payable
226: Unearned fees
301: Owner's Capital
302: Owner's withdrawals
403: Sales
404: Sales returns and allowances
405: Sales discounts
406: Interest revenue
600: Cost of goods sold
602: Purchases
603: Purchases returns and allowances
604: Purchases discounts
640: Rent expense
652: Freight-in
655: Bad debts expense
660: Delivery expense
665: Interest expense
700: Income summary

image text in transcribed

Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of King Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Feb. 14 Received Clark's payment of principal and interest on the $13,200, 60- day, 12% note dated December 16. The King Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab. Note: Enter debits before credits. Date General Journal Debit Credit Feb 14 General Ledger Account Cash Account receivable - Other No. Debit Credit No. Debit Credit Date Jan 01 Balance 47,634 Date Jan 01 Balance 42,700 Accounts receivable - T. Turner Accounts receivable - Walker Co. No. Debit Credit No. Date Debit Credit Balance Date Jan 01 Balance 17,400 Jan 01 7,000 Accounts receivable - Taylor Debit Credit No. No. Date Jan 01 Balance 16,000 Accounts receivable - J. Perez Date Debit Credit Jan 01 Balance 18,000 Allowance for doubtful accounts Notes receivable - J. Clark No. Debit Credit No. Debit Credit Date Jan 01 Balance 22,000 Date Jan 01 Balance 13,200 Interest receivable Merchandise inventory Debit Credit No. Debit Credit No. Date Jan 01 Balance 66 Date Jan 01 Balance 5,000 Owner's Capital No. Debit Credit Date Jan 01 Balance 145,000 King Company Trial Balance December 01, 2019 Account Title Credit Cash Account receivable - Other Accounts receivable - T. Turner Accounts receivable - Walker Co. Debit 47,634 42,700 17,400 7,000 16,000 18,000 22,000 Accounts receivable - Taylor Accounts receivable - J. Perez Allowance for doubtful accounts Notes receivable - J. Clark Interest receivable Merchandise inventory Owner's Capital Total 13,200 66 5,000 145,000 167,000 167,000 $ Here are the balances in Accounts and Notes receivable based on your journal entries: Dates: Jan 01 to: Dec 31 - King Co. Schedule of Accounts Receivable Accounts receivable - T. Turner * $ Accounts receivable - Walker Co. Accounts receivable - Taylor Accounts receivable - J. Perez Total accounts receivable $ 17,400 7,000 16,000 18,000 58,400 King Co. Schedule of Notes Receivable Notes receivable - J. Clark Total accounts receivable 13,200 13,200 $ King Co. Calculation of interest revenue February 14 - Clark note: Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue - Year 2 $ 0