Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3,
ID: 2578174 • Letter: P
Question
Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions are from Ohlm Company (Use 360 days a year.) 2016 Dec. 16 Accepted a $1,800, 60-day, 10% note dated this day in granting Danny Todd a tine extension on his past-due account 31 Made an adjusting entry to record the accrued interest on the Todd note. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $7,780, 1es, 9e-day note dated this day in granting a time extension on the past-due account receivable from Nidnight Co 17 Accepted a(n) S3 ,900, 30-day, 7% note dated this day in granting Ava Privet a tine extension on her past-due account receivable Apr. 16 Privet dishonored her note when presented for payment May 31 Hidnight Co. refused to pay the note that was due to Oh1m Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable July 16 Received payment from Kidnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity Aug. 7 Accepted a(n) $7,758, 98-day, 10x note dated this day in granting a time extension on the past-due account receivable of Sep 3 Accepted a( ) S2,878, 68-day, 11% note dated this day in granting Noah Carson a time extensi Mulan Co. on on his past-due account receivable. Nov. 2 Received payment of principel plus interest from Carson for the September 3 note. Nov. 5 Received payment of principel plus interest from Mulan for the August 7 note. Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. Required: 1-s. First, complete the table below to calculate the interest amount at December 31, 2016. Use th e calculated value to prepare your journal entries for 2016 transactions , First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for 2017 transactions Complete this question by entering your answers in the tabs below Required 1A Required 18 Required 1C Required 1DExplanation / Answer
1-a
Total through Maturity
Interest recognized in dec 16
Principal
10800
10800
Rate
10%
10%
Days
60/360
15/360
Total Interest
180
45
1-b
Todd a time extension on his past due accounts receivable
Date
General Journal
Debit
Credit
Dec-16
Notes receivable- D.Todd
10800
Accounts receivable - D.Todd
10800
Make an adjusting entry to record the accrued interest on Todd note
Dec-31
Interest receivable
45
Interest revenue
45
1-c
Midnight Co Note March 2 2017
A privet Note March 17 2017
Mulan Note Aug 7 2017
Midnight co Note- May 31 2017
N carson Note sept 32017
Principal
7700
3900
7750
7893
2870
Rate
10%
7%
10%
10%
11%
Time
90/360
30/360
90/360
46/360
60/360
Total interest
192.5
22.75
193.75
100.855
52.62
1-d
Date
General Journal
Debit
Credit
Feb-14
Cash
10980
Interest revenue
135
Interest receivable
45
Notes receivable - D.Todd
10800
Mar-02
Notes receivable - midnight co
7700
Accounts receivable - Midnight co
7700
Mar-17
Notes receivable - Privet note
3900
Accounts receivable - privet note
3900
Apr-16
Accounts receivable- A pivet
3922.75
Interest revenue
22.75
Notes receivable - A pivet
3900
May-31
Accounts receivable- Midnight co
7892.5
Interest revenue
192.5
Notes receivable - Midnight co
7700
Jul-16
Cash
7993.85
Interest revenue
100.85
Accounts receivable -Midnight co
7893
Aug-07
Notes receivable -Mulan
7750
Accounts receivable -Mulan
7750
Sep-03
Notes receivable - N carson
2870
Accounts receivable - N carson
2870
Nov-02
Cash
2922.62
Interest revenue
52.62
Notes receivable- N Carson
2870
Nov-05
Cash
7943.75
Interest revenue
193.75
Notes receivable - Mulan
7750
Dec-01
Allowance for doubtful accounts
3922.75
Accounts receivable - A pivet
3922.75
1-a
Total through Maturity
Interest recognized in dec 16
Principal
10800
10800
Rate
10%
10%
Days
60/360
15/360
Total Interest
180
45
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