Question

Following are transactions of Danica Company. 

Dec. 13 Accepted a $9,500, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. 

31 Prepared an adjusting entry to record the accrued interest on the Lee note 

Exercise 9-13 Notes receivable transactions LO P4 

Jan. 27 Received Lee's payment for principal and interest on the note dated December 13 .

 Mar. 3 Accepted a $ 5,000,10%, 90 -day note in granting a time extension on the past-due account receivable of Tomas Company.

17 Accepted a  $ 2,000,30 -day, 9% note in granting H. Cheng a time extension on his past-due account receivable. 

Apr. 16 H. Cheng dishonored his note. 

May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. 

June 1 Received the Tomas payment for principal and interest on the note dated March 3 .

Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round your intermediate calculations. Use 360 days a year.)

Answer 1

Answer 2

Jan 27. Cash = 9595 

            interest revenue = 57