Question

Following are transactions for Vitalo Company Nov. 1 Accepted a $5., 180-day, 8X note from Kelly white in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year and accounts for the accrued interest earned on the white note. Apr 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 3151 and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year) Complete this question by entering your answers in the tabs below. General Complete the table to calculate the interest amounts at December 31st and April 30th Total Through Maturity November 1 Through December 31 January 1 Through April 30 Principal Rate ) Time Total interest General Journal

Answer 1

Solution 1:

	Total Through Maturity	1nov through 31 dec	1 jan through april 30
Principal	$5,000
Rate (%)	8%
Time (days)	180	60	120
Total Interest	$200	$67	$133

Solution 2:

Date	Account title	Debit	Credit
01-Nov	Note Receivable	5000
	Accounts recevable		5000
31-Dec	Interest receivable	$67
	interest revenue		$67
30-Apr	Cash	$5,200
	Interest recevable		$67
	Interest revenue		$133
	Notes recevable		5000