Problem 7-5A (Static) Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a $10,800, 60-day, 8 % note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a $6,100, 8% , 90-day note in granting a time extension on the past-due account receivable from Midnight Company. March 17 Accepted a $2,400, 30-day, 7 % note in April 16 Privet dishonored her note. granting Ava Privet a time extension on her past-due account receivable. May 31 Midnight Company dishonored its note. August 7 Accepted a $7,440, 90-day, 10 % note in granting a time extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2,100, 60-day, 10 % note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Carson for the September 3 note. November 5 Received payment of principal plus interest from Mulan for the August 7 note. December 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.
Problem 7-5A (Static) Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a $10,800, 60-day, 8 % note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a $6,100, 8% , 90-day note in granting a time extension on the past-due account receivable from Midnight Company. March 17 Accepted a $2,400, 30-day, 7 % note in April 16 Privet dishonored her note. granting Ava Privet a time extension on her past-due account receivable. May 31 Midnight Company dishonored its note. August 7 Accepted a $7,440, 90-day, 10 % note in granting a time extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2,100, 60-day, 10 % note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Carson for the September 3 note. November 5 Received payment of principal plus interest from Mulan for the August 7 note. December 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.
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter9: Receivables
Section: Chapter Questions
Problem 9.4BPR: Details of notes receivable and related entries Gen-X Ads Co. produces advertising videos. During...
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