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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
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.
|
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 |
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