The following transactions are from Springer Company.

Required
1. Prepare journal entries to record these transactions and events.
2. If Springer pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?

Transcribed Image Text:

Year 1 Nov. 1 Dec. 31 Accepted a $4,800, 90-day, 8% note in granting Steve Julian a time extension on his past-due account receivable. Mar. 1 Made an adjusting entry to record the accrued interest on the Julian note. Year 2 Jan. 30 Received Julian's payment for principal and interest on the note dated November 1. Feb. 28 21 Accepted a $12,600, 30-day, 8% note in granting a time extension on the past-due account receivable from King Co. Accepted a $6,200, 60-day, 12% note in granting Myron Shelley a time extension on his past-due account receivable. The King Co. dishonored its note. 30 Apr. 30 Received payment of principal plus interest from M. Shelley for the March 1 note. June 15 Accepted a $2,000, 72-day, 8% note in granting a time extension on the past-due account receivable of Ryder Solon. Accepted a $9,500, 90-day, 8% note in granting J. Felton a time extension on his past-due account receivable. Aug. 26 Received payment of principal plus interest from R. Solon for the June 15 note.