GL0701 - Based on Problem 7-5A LO C2, C3, P4

The following selected transactions are from Hall Company. Year 1

Dec.		16			Accepted a $13,200, 60-day, 12% note in granting Wang Lee a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Lee note.

Year 2

Feb.		14			Received Lees payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $10,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Collins Co.
		17			Accepted a $10,800, 30-day, 7% note in granting Kathy Perry a time extension on her past-due account receivable.
Apr.		16			Perry dishonored her note.
May		31			Collins Co. dishonored its note.
Aug.		7			Accepted a $20,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Brown Co.
Sep.		3			Accepted a $3,000, 60-day, 10% note in granting Hao Lee a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Lee for the September 3 note.
Nov.		5			Received payment of principal plus interest from Brown for the August 7 note.
Dec.		1			Wrote off the Perry account against the Allowance for Doubtful Accounts.

1.Feb. 14 Received Lee's payment of principal and interest on the $13,200, 60-day, 12% note dated December 16. The Hall Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.

2.Mar. 2 Accepted an $10,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Collins Co.

3.Mar. 17 Accepted a $10,800, 30-day, 7% note in granting Kathy Perry a time extension on her past-due account receivable.

4.Apr. 16 Perry dishonored her note.

5.May 31 Collins Co. dishonored its note.

6.Aug. 7 Accepted a(n) $20,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Brown Co.

7. Sept. 3 Accepted a $3,000, 60-day, 10% note in granting Hao Lee a time extension on his past-due account receivable.

8.Nov. 2 Received payment of principal plus interest from Lee for the September 3 note.

9.Nov. 5 Received payment of principal plus interest from Brown for the August 7 note.

10. Dec. 1 Wrote off the Perry account against Allowance for Doubtful Accounts. No additional interest was accrued.

Hall Co.
Calculation of interest revenue
February 14 - Lee note:
Principal
Interest rate
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Principal
Interest rate
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Total interest revenue - Year 2	$0