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! Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Following are transactions of Danica Company. Dec. 13 Accepted a $26,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-13 Notes receivable transactions LO P4 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $20,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $18,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 H. Cheng dishonored his note. May June 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts 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. M Lee Note Tomas Co Note H Cheng Note Complete the table to calculate the interest amounts. Amount Accrued at December 31 26,000 8% 18/360 104 Principal Rate (%) Time Total interest Total Through Maturity $ $ 26,000 8% 45/360 260 $ General Journal $ Interest Recognized January 27 $ $ 26,000 8% 27/360 156 Complete this question by entering your answers in the tabs below. M Lee Note Tomas Co Note H Cheng Note First, complete the table below to calculate the interest amounts. Principal Rate (%) Time Total interest Total Through Maturity $ $ General Journal 20,000 8% 90/360 400 Complete this question by entering your answers in the tabs below. M Lee Note Tomas Co Note H Cheng Note First, complete the table below to calculate the interest amounts. Principal Rate (%) Time Total interest Total Through Maturity $ $ General Journal 18,000 10% 30/360 150 No 1 2 3 4 5 6 Date Jan 27 Mar 03 Mar 17 Apr 16 May 01 Jun 01 General Journal Notes receivable-M. Lee Sales Notes receivable-Tomas Co Accounts receivable-Tomas Co Notes receivable-H. Cheng Accounts receivable-H. Cheng Accounts receivable-H. Cheng Notes receivable-H. Cheng Allowance for doubtful accounts Accounts receivable-H. Cheng Notes receivable-Tomas Co Sales X Debit 26,000 X 20,000 18,000 38,000 X 18,150 20,000 Credit 26,000 20,000 18,000 38,000 X 18,150 20,000 Journal entry worksheet Journal entry worksheet Journal entry worksheet 1 2 3 H. Cheng dishonored his note. Date Apr 16 Note: Enter debits before credits. 5 General Journal Accounts receivable-H. Cheng Notes receivable-H. Cheng 6 Debit 38,000 Credit 38,000 Journal entry worksheet