The following selected transactions are from Ohlm Company. 2016 Dec. 16 Accepted a $11,900, 60-day, 9% note
Question:
The following selected transactions are from Ohlm Company.
2016
Dec. | 16 | Accepted a $11,900, 60-day, 9% 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) $7,900, 9%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. | ||
17 | Accepted a(n) $2,700, 30-day, 7% 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 its dishonored note plus interest for 46 days beyond maturity at 9%. | ||
Aug. | 7 | Accepted a(n) $7,200, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. | ||
Sep. | 3 | Accepted a(n) $2,580, 60-day, 11% 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.
First, complete the table below to calculate the interest amount at December 31, 2016.
|
Journal entry worksheet
- Accepted a $11,900, 60-day, 9% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
Note: Enter debits before credits.
|
First, complete the table below to calculate the interest amounts.
|
Journal entry worksheet
- Received Todd’s payment of principal and interest on the note dated December 16.
Note: Enter debits before credits.
|
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta