Question: Problem 8-13A Accrued interest calculation and dishonouring note receivable LO4 Following are transactions of the Purple Onion Company: 2022Dec.16Accepted a $20,000, 60-day, 5.5% note dated

Problem 8-13A Accrued interest calculation and dishonouring note receivable LO4

Following are transactions of the Purple Onion Company:

2022Dec.16Accepted a $20,000, 60-day, 5.5% note dated this day in granting Hal Krueger a time extension on his past-due account.31Made an adjusting entry to record the accrued interest on the Krueger note.31Closed the Interest income account.

2023Feb.14Received Kruegers payment for the principal and interest on the note dated December 16.Mar.2Accepted a $15,000, 3.75%, 90-day note dated this day in granting a time extension on the past-due account of ARC Company.17Accepted a $6,500, 30-day, 4% note dated this day in granting Penny Bobek a time extension on her past-due account.Apr.16Bobek dishonoured her note when presented for payment.

Required: a. Prepare journal entries to record the Purple Onions transactions. (Round your final answers to 2 decimal places.)

b-1. Determine the maturity date of the note dated March 2.

b-2. Prepare the entry on the maturity date, assuming ARC Company honours the note. (Round your final answers to 2 decimal places.)

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