Question 1 [30 points]

Prepare journal entries to record ABC Inc.'s transactions. Round all values to the nearest cent.

Question 1 [30 points] Prepare journal entries to record ABC Inc.'s transactions, Round all values to the nearest cent. a. December 14, 2013: ABC Inc. accepted a note from Bonnie Northrup for $2,000, 90-day, 11% dated this day granting a time extension on the past-due account. b. December 31, 2013: An adjusting entry was made to record the accrued interest on the Bonnie Northrup note. c. December 31, 2013: Closed the interest revenue account. d. March 1, 2014: ABC Inc. accepted a note from Susan Montgomery for $5,600, 90-day, 12% dated this day granting a time extension on the past-due account. e. March 14, 2014: Bonnie Northrup's payment for the principal and interest from the note dated December 14 was received. f. Determine the date that transaction (d) matures and record the entry to show the collection. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). General Journal Account/Explanation Page Gj1 Credit Date F Debit