8 00 D oints 01:29:06 eBook Following are transactions for Vitalo Company. Nov. 1 Accepted a...

Transcribed Image Text:

8 00 D oints 01:29:06 eBook Following are transactions for Vitalo Company. Nov. 1 Accepted a $18,000, 180-day, 9% note from Kelly White in granting a time extension on her past-due account receivable. Note from Dr. Beck: White owed us money as an Accounts Receivable, but needs more time to be able to pay us. To grant this extension we want more legal protection and some interest, so we are going to "change" the Accounts Receivable to a Notes Receivable due on April 30. We need to get rid of the AR and create a Notes Receivable Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Note from Dr. Beck: 60 days have passed since the note was issued Apr. 30 White honored her note when presented for payment. Note from Dr. Beck: You don't really have to worry about how many days are in February you just need to know that the other 120 days have passed Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Hint Ask Print References Interest Amounts General Journal Complete the table to calculate the interest amounts at December 31st and April 30th. Principal Rate (%) Time Total interest November 1 Total Through Maturity Through December 31 January 1 Through April 30 Interest Amounts General Journal > Next 8 00 D oints 01:29:06 eBook Following are transactions for Vitalo Company. Nov. 1 Accepted a $18,000, 180-day, 9% note from Kelly White in granting a time extension on her past-due account receivable. Note from Dr. Beck: White owed us money as an Accounts Receivable, but needs more time to be able to pay us. To grant this extension we want more legal protection and some interest, so we are going to "change" the Accounts Receivable to a Notes Receivable due on April 30. We need to get rid of the AR and create a Notes Receivable Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Note from Dr. Beck: 60 days have passed since the note was issued Apr. 30 White honored her note when presented for payment. Note from Dr. Beck: You don't really have to worry about how many days are in February you just need to know that the other 120 days have passed Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Hint Ask Print References Interest Amounts General Journal Complete the table to calculate the interest amounts at December 31st and April 30th. Principal Rate (%) Time Total interest November 1 Total Through Maturity Through December 31 January 1 Through April 30 Interest Amounts General Journal > Next