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ID: 2555861 • Letter: E

Question

eg- Check my work mode : This shows what is correct or incorrect for the work you have completed so for. It does not indica Following are selected transactions of Danica Company for 2016 and 2017 2016 Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 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. 2017 an. 27 Received Lee's payment for principal and interest on the note dated December 13. Har. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a tine extension on the pet-due Company 17 Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a tine extension on his past-due account receivable. Apr. 16 H. Cheng dishonored h May 1 wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 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 your intermediate calculations. Use 360 days a year.) Answer is not complete. Complete this destion by entering your answers in the tabs below. Tomas Co H Cheng Note Journal M Lee Note Note

Explanation / Answer

Complete the table to calculate the interest amounts and use those calculated values to prepare journal entries

M.lee note:

Total through Maturity

Amount Accrued at December 31

Interest recognized Jan 27

Principal

$9,500

$9,500

$9,500

Rate

8%

8%

8%

Time

45/360

18/360

27/360

Total interest

95

38

57

Thomas co Note:

Total through Maturity

Principal

$5,000

Rate

10%

Time

90/360

Total interest

$125

H.Cheng note

Total through Maturity

Principal

$2,000

Rate

9%

Time

30/360

Total interest

$15

Date

General Journal

Debit

credit

Jan 27 2016

Cash

9595

    Interest revenue

57

    Interest receivable

38

    Notes receivable -M lee

9500

Mar 03 2016

Notes receivable - thomos co

$5,000

     Accounts receivable - Thomos co

$5,000

Mar 17 2016

Notes receivable - H cheng

$2,000

     Accounts receivable - H cheng

$2,000

April 16 2016

Accounts receivable - H Cheng

$2,015

     Interest revenue

$15

     Notes receivable - H cheng

$2,000

May 01 2016

Allowance for doubtful Accounts

$2,015

      Accounts receivable - H cheng

$2,015

June 01 2016

Cash

5125

     Interest revenue

$125

     Notes receivable - Thomas co

$5,000

M.lee note:

Total through Maturity

Amount Accrued at December 31

Interest recognized Jan 27

Principal

$9,500

$9,500

$9,500

Rate

8%

8%

8%

Time

45/360

18/360

27/360

Total interest

95

38

57

Thomas co Note:

Total through Maturity

Principal

$5,000

Rate

10%

Time

90/360

Total interest

$125

H.Cheng note

Total through Maturity

Principal

$2,000

Rate

9%

Time

30/360

Total interest

$15