Question

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions are from Ohlm Company (Use 360 days a year.) 2016 Dec. 16 Accepted a $10,100, 60-day, 6 note dated this day 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. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,800, 60, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,600, 30-day, 78 note dated this day in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note when presented for payment. May 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. 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 te dishonored note plus interest for 46 days beyond maturity at 68. Aug. 7 Accepted a(n) $7,550, 90-day, 8% note dated this day in qranting a time extension on the past-due account receivable of Mulan Co. Sep 3 Accepted an $3.440, 60-day, 118 note dated this day 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, 2016. 1-b. Use the calculated value to prepare your journal entries for 2016 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 2017 transactions Complete this question by entering your answers in the tabs below. Required Required Required Required 1A 1B 1C First, complete the table below to calculate the interest amount at December 31, 2016. Interest Total Through Recognized December Maturity Principal Rate(%) Time Total interest Required 1A Required 1B >

Answer 1

D.Todd note-December 16,2012
		total	interest
		through	recognized
		maturity	31-Dec
Principal		10,100	10,100
Rate(%)		6%	6%
time		60/360	15/360
total interest		101	25
Date	General journal				Debit	credit
2016
16-Dec	Note receivable				10,100
	Account receivable					10,100
31-Dec	interest receivable				25
	interest revenue					25
		Midnight	privet	Mulan	midnight	carson
		2-Mar	17-Mar	7-Aug	31-May	3-Sep
		2018	2018	2018	2018	2018
Principal		6,800	3,600	7,550	6,902	3,440
Rate(%)		6%	7%	8%	6%	11%
time		90/360	30/360	90/360	46/360	60/360
total interest		102	21	151	53	63

Date	General journal				Debit	credit
2017
14-Feb	Cash				10201
	interest revenue					76
	Note receivable-T Todd					10,100
	interest receivable					25
2-Mar	Note receivable				6,800
	Account receivable-Midnight co					6,800
17-Mar	Note receivable				3,600
	Account receivable-Privet					3,600
16-Apr	Account receivable-privet				3,621
	note receivable					3,600
	interest revenue					21
31-May	Account receivable-Midnight				6,902
	note receivable					6,800
	interest revenue					102
16-Jul	Cash				6,955
	Account receivable-Midnight					6,902
	interest revenue					53
7-Aug	Note receivable				7,550
	account receivable-Mulan Co					7,550
3-Sep	Note receivable				3,440
	account receivable-Carson					3,440
2-Nov	cash				3,503
	note receivable					3,440
	interest revenue					63
5-Nov	cash				7,701
	note receivable					7,550
	interest revenue					151
1-Dec	Allowance for Doubtful accounts				3,621
	Account receivable-privet					3,621