The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16...

Transcribed Image Text:

The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a(n) $14,500, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a(n) $6,400, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company. March 17 Accepted a $3,100, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. August 7 Accepted a(n) $7,150, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2,470, 60-day, 12% note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Carson for the September 3 note. November 5 Received payment of principal plus interest from Mulan for the August 7 note. December 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, 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? 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. Principal Rate (%) Time Total interest Total Through Maturity Interest Recognized December 31 < Required 1A Required 1B > The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a(n) $14,500, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a(n) $6,400, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company. March 17 Accepted a $3,100, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. August 7 Accepted a(n) $7,150, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2,470, 60-day, 12% note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Carson for the September 3 note. November 5 Received payment of principal plus interest from Mulan for the August 7 note. December 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, 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? 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. Principal Rate (%) Time Total interest Total Through Maturity Interest Recognized December 31 < Required 1A Required 1B >