Following are selected transactions of Danica Company for 2016 and 2017. 2016 20

Question

Following are selected transactions of Danica Company for 2016 and 2017.

2016

2017

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

General Journal

Complete the table to calculate the interest amounts.

First, complete the table below to calculate the interest amounts.

Use those calculated values to prepare your journal entries.

Note: Enter debits before credits.

Accepted a $12,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company.

Accepted a $10,000, 30-day, 6% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable.

H. Cheng dishonored his note when presented for payment.

Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.

Received the Tomas payment for principal and interest on the note dated March 3.

Note: Enter debits before credits.

+

Dec. 13 Accepted a $18,000, 45-day, 10% 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.

Explanation / Answer

total amount intt through accrued at recognized maturity 31-Dec 27-Jan Principal 18,000 18,000 18,000 Rate(%) 10% 10% 10% Time 45/360 18/360 27/360 Total intt 225 90 135 total through maturity Principal 12,000 Rate(%) 10% Time 90/360 Total intt 300 total through maturity Principal 10,000 Rate(%) 6% Time 30/360 Total intt 50 journal entries Date General Journal Debit Credit 27-Jan Cash 18,225 interest receivable 90 interest income 135 note receivable 18,225 3-Mar Note receivable 12,000 Account receivable -Tomas 12,000 17-Mar Note receivable 10,000 Account receivable -Cheng 10,000 16-Apr Accounts receivable 10,050 interest income 50 note receivable 10,000 1-May Allowance for Doubtful accounts 10,050 Accounts receivable 10,050 1-Jun cash 12,300 note receivable 12,000 interest income 300

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