Question
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $14,700, 60-day, 7% note in granting Danny
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1
Dec. | 16 | Accepted a $14,700, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable. | ||
31 | Made an adjusting entry to record the accrued interest on the Todd note. |
Year 2
Feb. | 14 | Received Todds payment of principal and interest on the note dated December 16. | ||
Mar. | 2 | Accepted a(n) $7,700, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. | ||
17 | Accepted a(n) $3,900, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. | |||
Apr. | 16 | Privet dishonored her note. | ||
May | 31 | Midnight Co. dishonored its note. | ||
Aug. | 7 | Accepted a(n) $8,850, 90-day, 8% note in granting a time extension on the past-due account receivable of Mulan Co. | ||
Sep. | 3 | Accepted a(n) $3,360, 60-day, 8% note in granting Noah Carson a time extension on his past-due account receivable. | ||
Nov. | 2 | Received payment of principal plus interest from Carson for the September 3 note. | ||
Nov. | 5 | Received payment of principal plus interest from Mulan for the August 7 note. | ||
Dec. | 1 | Wrote off the Privet account against the Allowance for Doubtful Accounts. |
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?
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