Year 1

Dec.		16		Accepted a(n) $10,400, 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) $7,900, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.
		17		Accepted a $3,400, 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) $7,950, 90-day, 12% note in granting a time extension on the past-due account receivable of Mulan Co.
Sep.		3		Accepted a $3,780, 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.

Required: 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?

Total Through Maturity Interest Recognized December 31 $ 10,400 A 10,400 796 Principal Rate (%) Time Total interest 7% 90/360 60/360 Journal entry worksheet Journal entry worksheet