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 $19,000, 45-day, 7% 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 31% 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 31st Total Through Maturity Interest Recognized December 31 Principal Rate (%) Time Total interest < Interest Amounts General Journal >

Answer 1

a) Calculate following

	Total through maturity	Interest recognized December 31
Principal	19000	19000
Rate	7%	7%
Time	18/360	27/360
Total interest	66.5	99.75

Journal entry

Date	account and explanation	Debit	Credit
Dec 13	Notes receivable	19000
	Account receivable		19000
Dec 31	Interest receivable	66.50
	Interest revenue		66.50