Question

The following selected transactions are from Ohlm Company. (Uke 260 days a year) 2016 Dec 16 Accepted $10,, 60-day, 8 note dated this day in granting Danny Todd a tine extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. M 2017 Feb. 14 Received Todd's payment of principal and Interest on the note dated December 16. 2 Accepted a $6,180, 8X, 90-day note dated this day in granting a tine extension on the past-due account receivable Midnight Co 17 Accepted a $2,400, 30-day, 7 note dated this day in granting Ava Privet a tine extension on her past-due account receivable Apr 16 Privet dishonored her note when presented for payment. May Midnight Co. refused to pay the note that was due to Oh In Co. on May 11. Prepare the Journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond turity at B AUS 7 Accepted a $7.45e, 90-day, 14 note dated this day in granting a time extension on the past-due account receivable of Man Ses NO. NO. Dec. 3 Accepted a $2,100, Ge-day, 101 note dated this day in granting Noah Carson line extension on his past due account receivabi 2 Received payment of principal plus interest from Carson for the September 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 Account Required: 1. First complete the table below to calculate the interest amount at December 31, 2016, 1b. Use the calculated value to prepare your journal entries for 2016 transactions. 1. First, complete the table below to calculate the Interest amounts 1-d. Use those calculated values to prepare your journal entries for 2017 transactions Complete this question by entering your answers in the tabs below. Ae Required ID Required IC Required in Fire complete the table below to calculate the interest amount at December 31 2016 Hota Matum interest recognized December Principe

Answer 1

1a)
	Total through maturity	Interest recognized December 31
Principal	10800	10800
Rate %	8%	8%
Time	60/360	15/360
Total Interest	144	36
1b)
Date	General Journal	Debit	Credit
16-Dec	Notes receivable-D Todd	10800
	Accounts receivable—D. Todd		10800
31-Dec	Interest receivable	36
	Interest Revenue		36
1c)	First, complete the table below to calculate the interest amounts.Total Through Maturity
	Midnight Co.Note - March 2, 2017	A. Privet Note -March 17, 2017	Mulan Note -August 7, 2017	Midnight Co.Note - May 31,2017	N. Carson Note -September 3,2017
Principal	$                                                   6,100.00	$                           2,400.00	$                 7,450.00	$          6,222.00	$          2,100.00
Rate %	8%	7%	10%	8%	10%
Time	90/360	30/360	90/360	46/360	60/360
Total Interest	$                                                      122.00	$                                14.00	$                    186.25	$               63.60	$               35.00
1d)
Date	General Journal	Debit	Credit
Feb.14	Cash	$                         10,944.00
	Interest Revenue		$                    108.00
	Interest Receivables		$                      36.00
	Notes receivable-D Todd		$               10,800.00
2-Mar	Notes receivable - Midnight Co	$                           6,100.00
	Accounts Recivables- Midnight Co		$                 6,100.00
17-Mar	Notes receivable—A. Privet	$                           2,400.00
	Accounts receivable—A. Privet		$                 2,400.00
16-Apr	Accounts receivable—A. Privet	$                           2,414.00
	Notes receivable—A. Privet		$                 2,400.00
	Interest revenue		$                      14.00
31-May	Accounts receivable—Midnight Co	$                           6,222.00
	Notes receivable—Midnight Co		$                 6,100.00
	Interest revenue		$                    122.00
16-Jul	Cash	$                           6,285.60
	Interest revenue		$                      63.60
	Accounts receivable—Midnight Co		$                 6,222.00
7-Aug	Notes receivable—Mulan	$                           7,450.00
	Accounts receivable—Mulan		$                 7,450.00
3-Sep	Notes receivable—N. Carson	$                           2,100.00
	Accounts receivable—N. Carson		$                 2,100.00
2-Nov	Cash	$                           2,135.00
	Interest revenue		$                      35.00
	Notes receivable—N. Carson		$                 2,100.00
5-Nov	Cash	$                           7,636.25
	Interest revenue		$                    186.25
	Notes receivable—Mulan		$                 7,450.00
1-Dec	Allowance for doubtful accounts	$                           2,414.00
	Accounts receivable—A. Privet		$                 2,414.00