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 entries 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 transactions.
2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?

Required 1A

Time:

• 15/360
• 30/360
• 46/360
• 60/360
• 90/360
• 120/360
• 180/360

Required 1B

Gerneral Journal:

• Accounts payable—A. Privet
• Accounts payable—D. Todd
• Accounts payable—Midnight Co
• Accounts payable—Mulan
• Accounts payable—N. Carson
• Accounts receivable—A. Privet
• Accounts receivable—D. Todd
• Accounts receivable—Midnight Co
• Accounts receivable—Mulan
• Accounts receivable—N. Carson
• Allowance for doubtful accounts
• Cash
• Interest receivable
• Interest revenue
• Notes payable—A. Privet
• Notes payable—D. Todd
• Notes payable—Midnight Co
• Notes payable—Mulan
• Notes payable—N. Carson
• Notes receivable—A. Privet
• Notes receivable—D. Todd
• Notes receivable—Midnight Co
• Notes receivable—Mulan
• Notes receivable—N. Carson

Required 1C

Time:

• 15/360
• 30/360
• 46/360
• 60/360
• 90/360
• 120/360
• 180/360

Required 1D

General Journal:

• Accounts payable—A. Privet
• Accounts payable—D. Todd
• Accounts payable—Midnight Co
• Accounts payable—Mulan
• Accounts payable—N. Carson
• Accounts receivable—A. Privet
• Accounts receivable—D. Todd
• Accounts receivable—Midnight Co
• Accounts receivable—Mulan
• Accounts receivable—N. Carson
• Allowance for doubtful accounts
• Cash
• Interest receivable
• Interest revenue
• Notes payable—A. Privet
• Notes payable—D. Todd
• Notes payable—Midnight Co
• Notes payable—Mulan
• Notes payable—N. Carson
• Notes receivable—A. Privet
• Notes receivable—D. Todd
• Notes receivable—Midnight Co
• Notes receivable—Mulan
• Notes receivable—N. Carson

Required 2

The pledge of receivables is shown in the:

• Income statement
• Financial statement footnotes
• Balance Sheet

Answer rating: 100% (QA)

Required 1A To calculate the interest amount at December 31 Year 1 we need to use the given time per... View the full answer