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.

	Total Through Maturity	Interest Recognized December 31
Principal
Rate (%)
Time
Total interest

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.

Date	General Journal	Debit	Credit
Dec 16

First, complete the table below to calculate the interest amounts.

	Total Through Maturity
	Midnight Co. Note - March 2, 2017	A. Privet Note - March 17, 2017	Mulan Note - August 7, 2017	Midnight Co. Note - May 31, 2017	N. Carson Note - September 3, 2017
Principal
Rate (%)
Time
Total interest

Journal entry worksheet

• Received Todd’s payment of principal and interest on the note dated December 16.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Feb 14

Answer rating: 100% (QA)

DTodd noteDecember 162016 total interest through recognized maturity 31Dec Principal 11900 11900 Rat... View the full answer