The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1

Dec.		16		Accepted a(n) $10,900, 60-day, 9% 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) $7,900, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.
		17		Accepted a $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) $8,200, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co.
Sep.		3		Accepted a $2,650, 60-day, 10% 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) First, complete the table below to calculate the interest amounts.

	Total Through Maturity
	Midnight Co. 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

2) Use those calculated values to prepare your journal entries for Year 2 transactions.

No	Date	General Journal	Debit	Credit
1	Feb 14	Cash
		Notes receivableD. Todd
		Interest revenue
		Interest receivable
2	Mar 02	Notes receivableMidnight Co
		Accounts receivableMidnight Co
3	Mar 17	Notes receivableA. Privet
		Accounts receivableA. Privet
4	Apr 16	Accounts receivableA. Privet
		Notes receivableA. Privet
		Interest revenue
5	May 31	Accounts receivableMidnight Co
		Notes receivableMidnight Co
		Interest revenue
6	Aug 07	Notes receivableMulan
		Accounts receivableMulan
7	Sep 03	Notes receivableN. Carson
		Accounts receivableN. Carson
8	Nov 02	Cash
		Notes receivableN. Carson
		Interest revenue
9	Nov 05	Cash
		Notes receivableMulan
		Interest revenue
10	Dec 01	Allowance for doubtful accounts
		Accounts receivableA. Privet