Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.) Following are transactions of Danica Company. Dec. 13 Accepted a $25,000, 45-day, 88 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 7-12 Notes receivable transactions LO C2 Complete the table to calculate the interest amounts at December 31st and use the calculated value to prepare your journal entries. (Do not round your intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at December 313 Total Through Maturity Interest Recognized December 31 Principal Rate(%) Time Total interest

Answer 1

a) Table

	Total through maturity	Interest recognized December 31
Principal	25000	25000
Rate	8%	8%
Times	18/360	27/360
Interest	100	150

b) Journal entry

Date	account and explanation	Debit	Credit
Dec 13	Notes receivable	25000
	Account receivable		25000
Dec 31	Interest receivable	100
	Interest revenue		100