Question

8 The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $12, 100, 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. olnts Skipped Year 2 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,900, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co 17 Accepted a(n) $3,900, 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) $8,150, 90-day, 9% note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $3,790, 60-day, 9% 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. eBook Print 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 pled of receivables? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 1D Required 2 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 Required 1A Required 1B >

Answer 1

D.Todd note-December 16,2012
		total	interest
		through	recognized
		maturity	31-Dec
Principal		12,100	12,100
Rate(%)		7%	7%
time		60/360	15/360
total interest		141	35
Date	General journal				Debit	credit
2016
16-Dec	Note receivable				12,100
	Account receivable					12,100
31-Dec	interest receivable				35
	interest revenue					35
		Midnight	privet	Mulan		carson
		2-Mar	17-Mar	7-Aug		3-Sep
		2018	2018	2018		2018
Principal		6,900	3,900	8,150		3,790
Rate(%)		7%	7%	9%		9%
time		90/360	30/360	90/360		60/360
total interest		121	23	183		57

Date	General journal				Debit	credit
2017
14-Feb	Cash				12241
	interest revenue					106
	Note receivable-T Todd					12,100
	interest receivable					35
2-Mar	Note receivable				6,900
	Account receivable-Midnight co					6,900
17-Mar	Note receivable				3,900
	Account receivable-Privet					3,900
16-Apr	Account receivable-privet				3,923
	note receivable					3,900
	interest revenue					23
31-May	Account receivable-Midnight				7,021
	note receivable					6,900
	interest revenue					121
7-Aug	Note receivable				8,150
	account receivable-Mulan Co					8,150
3-Sep	Note receivable				3,790
	account receivable-Carson					3,790
2-Nov	cash				3,847
	note receivable					3,790
	interest revenue					57
5-Nov	cash				8,333
	note receivable					8,150
	interest revenue					183
1-Dec	Allowance for Doubtful accounts				3,923
	Account receivable-privet					3,923