The following transactions are from Ohlm Company.

Note: Use 360 days a year.

Year 1

December 16	Accepted a(n) $11,100, 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) $6,400, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company.
March 17	Accepted a $2,700, 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) $8,800, 90-day, 11% note in granting a time extension on the past-due account receivable of Mulan Company.
September 3	Accepted a $2,350, 60-day, 11% 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.

	Total Through Maturity	Interest Recognized December 31
Principal
Rate (%)
Time
Total interest

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.

	Total Through Maturity
	Midnight Company Note - March 2, Year 2	A. Privet Note - March 17, Year 2	Mulan Note - August 7, Year 2	N. Carson Note - September 3, 2017
Principal
Rate (%)
Time
Total interest

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?