Question

The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $11,0ee, 60-day, 8% 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) $7,480, 8%, 9e-day note in granting a time extension on the past-due account receivable from Midnight Co 17 Accepted a (n) $3,500, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May Aug. Sep. 31 Midnight Co. dishonored its note 7 Accepted a(n) $7,850, 98-day, 12 % note in granting a time extension on the past-due account receivable of Mulan Co 3 Accepted a(n) $3,530, 6e-day, 12 % note in granting Noah Carson a time extension on his past-due account receivable 2 Received payment of principal plus interest from Carson for the September 3 note. 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 Accounts Nov Nov. Dec. 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 entrles 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 transactlons. 2. If Ohlm pledged Its recelvables as security for a loan from the bank, where on the financlal statements does It disclose this pledge of recelvables? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 1D Required 2 First, complete the table below to calculate the interest amount at December 31, Year 1 Interest Total Through Maturity Recognized December 31 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		11,000	11,000
Rate(%)		8%	8%
time		60/360	15/360
total interest		147	37
Date	General journal				Debit	credit
2016
16-Dec	Note receivable				11,000
	Account receivable					11,000
31-Dec	interest receivable				37
	interest revenue					37
		Midnight	privet	Mulan		carson
		2-Mar	17-Mar	7-Aug		3-Sep
		2018	2018	2018		2018
Principal		7,400	3,500	7,850		3,530
Rate(%)		8%	7%	12%		12%
time		90/360	30/360	90/360		60/360
total interest		148	20	236		71

Date	General journal				Debit	credit
2017
14-Feb	Cash				11147
	interest revenue					110
	Note receivable-T Todd					11,000
	interest receivable					37
2-Mar	Note receivable				7,400
	Account receivable-Midnight co					7,400
17-Mar	Note receivable				3,500
	Account receivable-Privet					3,500
16-Apr	Account receivable-privet				3,520
	note receivable					3,500
	interest revenue					20
31-May	Account receivable-Midnight				7,548
	note receivable					7,400
	interest revenue					148
7-Aug	Note receivable				7,850
	account receivable-Mulan Co					7,850
3-Sep	Note receivable				3,530
	account receivable-Carson					3,530
2-Nov	cash				3,601
	note receivable					3,530
	interest revenue					71
5-Nov	cash				8,086
	note receivable					7,850
	interest revenue					236
1-Dec	Allowance for Doubtful accounts				3,520
	Account receivable-privet					3,520

the pledge of receivables is shown in the Balance sheet