Following are selected transactions of Danica Company for 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.
1. Complete the table to calculate the interest amounts at December 31 and use the calculated value to prepare your journal entries (do not round your intermediate calculations. Use 360 days a year).
2. Record the acceptance of a $9500, 45-day, 8% note dated December 31 in granting Miranda Lee a time extension on her past-due account receivable.
3. Prepare an adjusting entry to record the accrued interest on the Lee note.
Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
31
Made an adjusting entry to record the accrued interest on the Todd note.
2017
Feb.
14
Received Toddâs payment of principal and interest on the note dated December 16.
Mar.
2
Accepted a(n) $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
17
Accepted a(n) $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
Apr.
16
Privet dishonored her note when presented for payment.
May
31
Midnight Co. refused to pay the note that was due to Ohlm 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 Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.
Aug.
7
Accepted a(n) $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
Sep.
3
Accepted a(n) $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
Nov.
2
Received payment of principal plus interest from Carson for the September 3 note.
Nov.
5
Received payment of principal plus interest from Mulan for the August 7 note.
Dec.
1
Wrote off the Privet account against the Allowance for Doubtful Accounts.
Required: 1-a. First, complete the table below to calculate the interest amount at December 31, 2016. 1-b. Use the calculated value to prepare your journal entries for 2016 transactions. 1-c. First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for 2017 transactions.
Required 1A
First, complete the table below to calculate the interest amount at December 31, 2016.
Total Through Maturity
Interest Recognized December 31
Principal
Rate (%)
Time
Total interest
Required 1B
Use the calculated value to prepare your journal entries for 2016 transactions.
Journal entry worksheet
Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
Note: Enter debits before credits.
Made an adjusting entry to record the accrued interest on the Todd note.
Required 1C
First, complete the table below to calculate the interest amounts.
Total Through Maturity
Midnight Co. Note - March 2, 2017
A. Privet Note - March 17, 2017
Mulan Note - August 7, 2017
Midnight Co. Note - May 31, 2017
N. Carson Note - September 3, 2017
Principal
Rate (%)
Time
Required 1D
Use those calculated values to prepare your journal entries for 2017 transactions.
Journal entry worksheet
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1. Received Toddâs payment of principal and interest on the note dated December 16.
2. Accepted a $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
3. Accepted a $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
4. Privet dishonored her note when presented for payment.
5. Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.âs accounts receivable.
6. Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.
7. Accepted a $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
8. Accepted a $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
9. Received payment of principal plus interest from Carson for the September 3 note.
10. Received payment of principal plus interest from Mulan for the August 7 note.
11. Wrote off the Privet account against Allowance for Doubtful Accounts.
