31 Prepared an adjusting entry to record the accrued interest on the Lee note. (Algo) Notes receivable transactions LO P4 eived Lee's payment for principal and interest on the note dated December 13. epted a $18,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas pany. epted a $15,000, 30-day, 6% note in granting H. Cheng a time extension on his past-due account eivable. Cheng dishonored his note. te off the H. Cheng account against the Allowance for Doubtful Accounts. eived the Tomas payment for principal and interest on the note dated March 3. ble to calculate the interest amounts and use those calculated values to prepare your journal entries. und intermediate calculations. Use 360 days a year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
Use the following information for the Exercises 18-19 below. (Algo)
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $24,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due
account receivable.
December 31 Prepared an adjusting entry to record the accrued interest on the Lee note.
Exercise 7-19 (Algo) Notes receivable transactions LO P4
January 27 Received Lee's payment for principal and interest on the note dated December 13.
March 3 Accepted a $18,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas
Company.
March 17 Accepted a $15,000, 30-day, 6 % note in granting H. Cheng a time extension on his past-due account
receivable.
April 16 H. Cheng dishonored his note.
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.
Note: 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
H Cheng Note
Company Note
General
Journal
Total Through
Maturity
Complete the table to calculate the interest amounts.
Interest
Recognized
January 27
Amount
Accrued at
December 31
Principal
$
24,000 $
Rate (%)
8%
Time
45/360
24,000
8%
18/360
$
24,000
8%
Total interest
Saved
Transcribed Image Text:Required information Use the following information for the Exercises 18-19 below. (Algo) [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $24,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-19 (Algo) Notes receivable transactions LO P4 January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $18,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $15,000, 30-day, 6 % note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. 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. Note: 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 H Cheng Note Company Note General Journal Total Through Maturity Complete the table to calculate the interest amounts. Interest Recognized January 27 Amount Accrued at December 31 Principal $ 24,000 $ Rate (%) 8% Time 45/360 24,000 8% 18/360 $ 24,000 8% Total interest Saved
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