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

Dec.		16		Accepted a $14,400, 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) $7,700, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.
		17		Accepted a(n) $2,700, 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) $8,900, 90-day, 12% note in granting a time extension on the past-due account receivable of Mulan Co.
Sep.		3		Accepted a(n) $2,330, 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.

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

  Accepted a $14,400, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable.

• 2

  Made an adjusting entry to record the accrued interest on the Todd note.

1-c. First, complete the table below to calculate the interest amounts.

First, complete the table below to calculate the interest amounts. (Do not round intermediate calculations.)

	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

1-d. Use those calculated values to prepare your journal entries for Year 2 transactions.

• 1

  Received Todds payment of principal and interest on the note dated December 16.

• 2

  Accepted a(n) $7,700, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.

• 3

  Accepted a(n) $2,700, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.

• 4

  Privet dishonored her note.

• 5

  Midnight Co. dishonored its note.

• 6

  Accepted a(n) $8,900, 90-day, 12% note in granting a time extension on the past-due account receivable of Mulan Co.

• 7

  Accepted a(n) $2,330, 60-day, 8% note in granting Noah Carson a time extension on his past-due account receivable.

• 8

  Received payment of principal plus interest from Carson for the September 3 note.

• 9

  Received payment of principal plus interest from Mulan for the August 7 note.

• 10

  Wrote off the Privet account against the Allowance for Doubtful Accounts.

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?