Question

Following are transactions of The Purple Onion Company 2016 Dec 16 Accepted a $10,000, 60-day, 5.5 % note dated this day in granting Hal Krueger a time extension on his past-due account. 31 Made an adjusting entry to record the accrued interest on the Krueger note. 31 Closed the Interest income account 2017 Feb. 14 Received Krueger's payment for the principal and interest on the note dated December 16. Mar. 2 Accepted a $5,000, 3.75%, 90-day note dated this day in granting a time extension on the past-due account of ARC Company 17 Accepted a $1,000, 30-day, 4 % note dated this day in granting Penny Bobek a time extension on her past-due account Apr. 16 Bobek dishonoured her note when presented for payment. Required: a. Prepare jounal entries to record The Purple Onion's transactions. (If no entry is required for a transaction/event, select '"No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) Required: a. Prepare journal entries to record The Purple Onion's transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) View journal entry works heet View transaction list Date Debit No General Journal Credit Dec 16, 2016 Notes receivable 10,000.00 1 Accounts receivable-Hal Krueger 10,000.00 2 Dec 31, 2016 Interest receivable 137.50 137.50 Interest revenue Dec 31, 2016 3 Interest receivable 137.50 137.50 Interest revenue 10,550.00 Feb 14, 2017 Cash Interest revenue 412.50 Interest receivable 137.50 10,000.00 Notes receivable Notes receivable 5.000.00 5 Mar 02, 2017 Accounts receivable-ARC company 5,000.00 Notes receivable 6 Mar 17, 2017 1,000.00 Accounts receivable-Penny Bobek 1,000.00 Accounts receivable-Penny Bobek 7 Apr 16, 2017 1,003.33 Notes receivable 1,000.00 Interest receivable 3.33 b-1. Determine the maturity date of the note dated March 2 Maturity date b-2. Prepare the entry on the maturity date, assuming ARC Company honours the note. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the collection of note plus interest Note: Enter debits before credits. General Journal Transaction Debit Credit Record entry Clear entry View general journal

Answer 1

B-1 Maturity date : 05th April 2017.

B-2

Date	Particular	Dr	Cr	Remarks
16/12/2016	notes Receivable	10000		NO
	Account receivale-Hal keuger		10000
31/12/2016	Interest receivable	137.5		YES
	Interest revenue		137.5
31/12/2016	Interest revenue	137.5		YES
	Interest receivable		137.5
14/12/2017	Cash	10550		YES
	Interest revenue		412.5
	Interest receivable		137.5
	Notes receivable		10000
2/3/2017	notes Receivable	5000		YES
	Account receivale-ARC company		5000
17/3/2017	notes Receivable	1000		YES
	Accounts receivale-Penny bobek		1000
16/4/2017	Accounts receivale-Penny bobek	1003.33		YES
	notes Receivable		1000
	Interest receivable		3.33