Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following selected transactions are from Ohlm Company 2014 Accepted a $10.800, 60-day, 8% note dated this day in granting Danny Todd a time extension

image text in transcribed
image text in transcribed
The following selected transactions are from Ohlm Company 2014 Accepted a $10.800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable. Dec. 16 31 Made an adjusting entry to record the accrued interest on the Todd note 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 89, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. Accepted a $2.400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past. due account receivable. 17 Apr. 16 Privet dishonored her note when presented for payment May 31 Midnight Co. refuses to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 Aug. 7 Accepted a $7,450, 90-day, 10% note dated this day in granting a time extension on the past-due Sept. 3 Accepted a $2,100, 60-day, 10% note dated this day in granting Noah Carson a time extension on his charge the dishonored note plus accrued interest to Midnight Co's accounts receivable. days beyond maturity at 8%. account receivable of Mulan Co. Nov. Nov. Dec. 2 5 1 past-due account receivable. Received payment of principal plus interest from Carson for the September 3 note. Received payment of principal plus interest from Mulan for the August 7 note. Wrote off the Privet account against Allowance for Doubtful Accounts. Required 1. Prepare journal entries to record these transactions and events. (Round amounts to the nearest dollar.) Analysis Component 1. What reporting is necessary when a business pledges receivables as security for a loan and the loan is still outstanding at the end of the period? Explain the reason for this requirement and the accounting principle being satisfied

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser

2nd Edition

0073128244, 9780073128245

More Books

Students also viewed these Accounting questions

Question

=+analysis, and social media communication audit

Answered: 1 week ago