elected transactions are from Ohlm Company Problem 9-5 Analyzing and nalizing ne
ID: 2577174 • Letter: E
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elected transactions are from Ohlm Company Problem 9-5 Analyzing and nalizing ne receivable tra C2 C3 P a $10,800. 60-day,8%note dated this day in granting Danny -due account receivable. Da: 16 p on his past-due Todd a time extension 31 Made Made an adjusting entry to record the accrued interest on the Todd note. Todd's payment of principal and interest on the note dated December 16. Received a se 100,8%, 90-day note dated this day in granting a time extension on the past due ceps ccivable from Midnight Co. 2 acco ured a 2.400, 30-day, 7% note dated this day in granting Ava Privet a time extension on , , May 31 Midnighthonored trecey 7% htO th ly Ang Feh 14 Received Check Fet 1 her pastihonored her note when presented for payment. t-due account receivable 16 Privet dish refused to pay the note that was due to Ohlm Co. on May 31. Prepare the ApMidnight Co. refused to pay th i Midnij entry to charge the dishonored note plus accrued interest to Midnight Co.'s ac- Revenue counts receivable. ent from Midnight Co. for the maturity value of its dishonored note plus interest for 46 day $7,450 90-day, l0% note dated this day in granting a time extension on the past due beyond maturity at 8% accou ted as 2100, 60-day 10% note dated this day in granting Noah Carson a time extension receivable of Mulan Co his past-due account receivable payment of principal ved plus interest from Carson for the September 3 note. Rece ment of principal plus interest from Mulan for the August 7 not Privet account against the Allowance for Doubtful Accounts. a Rev Dec e: I Wrote off the to record these transactions and events. (Round amounts to the nearest dollar.) nalysis Component ing is nec anding at the end of essary when a business pledges receivables as security for a loan and the loan is the period? Explain the reason for this requirement and the accounting 2 wh cp What report silloutsta principle being satisfied.Explanation / Answer
OHLM COMPANY Journal entries for the year 2016 Date Account title Debit Credit Dec.16 Note receivable 10800 Accounts Receivable 10800 (To record note receivable receieved from Danny Tod) Dec.31 Interest receivable 36 Interest revenue 36 (To record interest due on the note receivable) OHLM COMPANY Journal entries for the year 2017 Date Account title Debit Credit Feb.14 Cash 10944 Note receivable 10800 Interest receivable 36 Interest revenue 108 (To record cash received against on note receivable and interest) Mar.2 Note receivable 6100 Accounts Receivable 6100 (To record note receivable from Midnight Co.) Mar.17 Note receivable 2400 Accounts Receivable 2400 (To record note receivable from Ava Privet) Apr.16 Accounts Receivable 2400 Note receivable 2400 (To record dishonour of note receivable by Ava Privet) May.31 Accounts Receivable 6222 Note receivable 6100 Interest revenue * 122 (To record dishonour of note receivable by midnight Co.) July.16 Cash 6284 Note receivable 6222 Interest revenue 62 (To record cash received from Midnight Co.) Aug.7 Note receivable 7450 Accounts Receivable 7450 (To record 90 day , 10% note receivable from Mulan Co.) Sep.3 Note receivable 2100 Accounts Receivable 2100 (To record 60 day, 10 % note receivable from Noah Carson) Nov.2 Cash 2135 Note receivable 2100 Interest revenue 35 (To record settlement of note receivable by Noah Carson ) Nov.5 Cash 7636 Note receivable 7450 Interest revenue 186 (To record settlement of note receivable by Mulan Co.) Dec.31 Bad debt expense 2400 Accounts Receivable 2400 (To record write off of Ava Privet's account) Amount of note receivable from Midnight = $6,100 * Interest revenue for 46 days = 6,100 x 0.08 x 46 /360 = $62.
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