GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Taylor Company. Year 1 Dec. 16 Accepted a $15,600, 60-day, 10% note in granting Spencer Lauer a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Lauer note. 31 Year 2 Feb. 14 Mar. 2 17 Apr. 16 May 31 Aug. 7 Received Lauer's payment of principal and interest on the note dated December 16. Accepted a $9,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Garcia Co. Accepted a $19, 200, 30-day, 7% note in granting Lindsey Martin a time extension on her past-due account receivable. Martin dishonored her note. Garcia Co. dishonored its note. Accepted a $20,000, 90-day, 10% note in granting a time extension on the past-due account receivable of Griffin Co. Accepted a $4,200, 60-day, 10% note in granting Carolyn Collins a time extension on his past-due account receivable. Received payment of principal plus interest from Collins for the September 3 note. Received payment of principal plus interest from Griffin for the August 7 note. Wrote off the Martin account against the Allowance for Doubtful Accounts. Sep. 3 Nov. Nov. Dec. PUN Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Prepare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. No Date General Journal Debit Credit 1 Feb 14 Cash 15,860 Notes receivable - L. Martin x 15,600 Interest receivable 65 Interest revenue 195 2 Mar 02 9,000 Notes receivable - Garcia Co. Interest receivable x 9,000 Mar 17 19,200 > Notes receivable - L. Martin Account receivable - Other X 19,200 4 Apr 16 4,828 X Accounts receivable - L. Martin Notes receivable - L. Martin 4,800 X 28 X Interest revenue 5 May 31 Accounts receivable - Garcia Co. 10,250 X Notes receivable - Garcia Co. 10,000 5 May 31 Accounts receivable - Garcia Co. 10,250 X Notes receivable - Garcia Co. 10,000 Interest revenue 250 X 6 Aug 07 Notes receivable - Griffin 14,000 Accounts receivable - Griffin 14,000 X 7 Sep 03 Notes receivable - C. Collins 6,600 Accounts receivable - C. Collins 6,600 8 Nov 02 Cash 6,710 Notes receivable - C. Collins 6,600 Interest revenue 110 X 9 Nov 05 Cash 14,350 Notes receivable - Griffin 14,000 X Interest revenue 350 10 Dec 01 Allowance for doubtful accounts 4,828 Accounts receivable - L. Martin 4,828 Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance. Dates: Jan 01 to: Dec 31 Taylor Co. Calculation of interest revenue February 14 - Lauer note: Principal $ 15,600 Interest rate 10.0% 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 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