The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $12,00e, 60-day, 7% note dated this day 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. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. 2 Accepted a(n) $6,500, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,200, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. Mar. Apr. 16 Privet dishonored her note when presented for payment. 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. May July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%. Aug. 7 Accepted a(n) $7,450, 90-day, 8% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a (n) $2,700, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable. 2 Received payment of principal plus interest from Carson for the September 3 note. 5 Received payment of principal plus interest from Mulan for the August 7 note. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. Nov. Nov. Dec. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, 2016. 1-b. Use the calculated value to prepare your journal entries for 2016 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 2017 transactions.
The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $12,00e, 60-day, 7% note dated this day 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. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. 2 Accepted a(n) $6,500, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,200, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. Mar. Apr. 16 Privet dishonored her note when presented for payment. 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. May July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%. Aug. 7 Accepted a(n) $7,450, 90-day, 8% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a (n) $2,700, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable. 2 Received payment of principal plus interest from Carson for the September 3 note. 5 Received payment of principal plus interest from Mulan for the August 7 note. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. Nov. Nov. Dec. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, 2016. 1-b. Use the calculated value to prepare your journal entries for 2016 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 2017 transactions.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 5P
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Transcribed Image Text:The following selected transactions are from Ohlm Company. (Use 360 days a year.)
2016
Dec. 16 Accepted a $12,00e, 60-day, 7% note dated this day 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.
2017
Feb. 14 Received Todd's payment of principal and interest on the note dated December 16.
2 Accepted a(n) $6,500, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from
Midnight Co.
17 Accepted a(n) $3,200, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account
Mar.
receivable.
Apr. 16 Privet dishonored her note when presented for payment.
31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored
note plus accrued interest to Midnight Co.'s accounts receivable.
May
July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity
at 7%.
Aug.
7 Accepted a(n) $7,450, 90-day, 8% note dated this day in granting a time extension on the past-due account receivable of
Mulan Co.
Sep.
3 Accepted a(n) $2,700, 60-day, 10% note dated this day in granting „Noah Carson a time extension on his past-due account
receivable.
2 Received payment of principal plus interest from Carson for the September 3 note.
5 Received payment of principal plus interest from Mulan for the August 7 note.
1 Wrote off the Privet account against the Allowance for Doubtful Accounts.
Nov.
Nov.
Dec.
Required:
1-a. First, complete the table below to calculate the interest amount at December 31, 2016.
1-b. Use the calculated value to prepare your journal entries for 2016 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 2017 transactions.
Transcribed Image Text:Required 1A
Required 1B
Required 1C
Required 1D
First, complete the table below to calculate the interest amount at December 31, 2016.
Interest
Total Through
Maturity
Recognized
December 31
Principal
Rate (%)
Time
Total interest
Required 1A
Required 1B >
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