Required informationUse 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-dueaccount receivable.December 31 Prepared an adjusting entry to record the accrued interest on the Lee note.Exercise 7-19 (Algo) Notes receivable transactions LO P4January 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 TomasCompany.March 17 Accepted a $15,000, 30-day, 6 % note in granting H. Cheng a time extension on his past-due accountreceivable.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 NoteTomasH Cheng NoteCompany NoteGeneralJournalTotal ThroughMaturityComplete the table to calculate the interest amounts.InterestRecognizedJanuary 27AmountAccrued atDecember 31Principal$24,000 $Rate (%)8%Time45/36024,0008%18/360$24,0008%Total interestSaved

Notes receivable is an instrument issued by the payer to the receiver against the unpaid amount. It…

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.

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

Problem 1Q

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Question A and B pleas A business issued a 90day,8% note for 67000$ to creditor on account. Illustrat the effects on the accounts and the financial statement of recording (a) the issuance of the note and (b) the payment of the note at maturity icluding interest. If no account or activity is affect d select "no effect" from the dropdown list and leave the corresponding number entry box blank. Enter account deceases and cash outflows as negative amounts