Question

Year 1 Dec. 16 Accepted a $12, 600, 60-day, 88 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. Year 2 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a (n) $7,800, 89, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a (n) $2,100, 30-day, 79 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) $8,450, 90-day, 9 note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a (n) $3,340, 60-day, 99 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. 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 Ohim pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables? Complete this question by entering vour answers in the tabs below. Proy 1 of 1 !!! Next

Answer 1

D.Todd note-December 16,2012
		total	interest
		through	recognized
		maturity	31-Dec
Principal		12,600	12,600
Rate(%)		8%	8%
time		60/360	15/360
total interest		168	42
Date	General journal				Debit	credit
2016
16-Dec	Note receivable				12,600
	Account receivable					12,600
31-Dec	interest receivable				42
	interest revenue					42
		Midnight	privet	Mulan		carson
		2-Mar	17-Mar	7-Aug		3-Sep
		2018	2018	2018		2018
Principal		7,800	2,100	8,450		3,340
Rate(%)		8%	7%	9%		9%
time		90/360	30/360	90/360		60/360
total interest		156	12	190		50

Date	General journal				Debit	credit
2017
14-Feb	Cash				12768
	interest revenue					126
	Note receivable-T Todd					12,600
	interest receivable					42
2-Mar	Note receivable				7,800
	Account receivable-Midnight co					7,800
17-Mar	Note receivable				2,100
	Account receivable-Privet					2,100
16-Apr	Account receivable-privet				2,112
	note receivable					2,100
	interest revenue					12
31-May	Account receivable-Midnight				7,956
	note receivable					7,800
	interest revenue					156
16-Jul	Cash				8,027
	Account receivable-Midnight					7,956
	interest revenue					71
7-Aug	Note receivable				8,450
	account receivable-Mulan Co					8,450
3-Sep	Note receivable				3,340
	account receivable-Carson					3,340
2-Nov	cash				3,390
	note receivable					3,340
	interest revenue					50
5-Nov	cash				8,640
	note receivable					8,450
	interest revenue					190
1-Dec	Allowance for Doubtful accounts				2,112
	Account receivable-privet					2,112