GLO701 - Based on Problem 7-5A LO C2, C3, P4The following selected transactions are from Garcia Company.Year 1Dec. 16 Accepted a $20, 400, 60-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable.31 Made an adjusting entry to record the accrued interest on the Griffin note.Year 2Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16.2 Accepted a $9,00e, 6%, 90-day note in granting a time extension on the past-due account receivable from Wright Co.17 Accepted a $7, 200, 30-day, 10% note in granting Wang Lee a time extension on her past-due account receivable.Apr. 16 Lee dishonored her note.31 Wright Co. dishonored its note.Mar.MayAug. 7 Accepted a $22, eee, 98-day, 1e% note in granting a time extension on the past-due account receivable of Collins Co.Sep.Nov. 2 Received payment of principal plus interest from Gonzalez for the September 3 note.Nov. 5 Received payment of principal plus interest from Collins for the August 7 note.Dec.3 Accepted a $11,400, 60-day, 10% note in granting Maria Gonzalez a time extension on his past-due account receivable.1 Wrote off the Lee account against the Allowance for Doubtfu1 Accounts.GeneralJournalSchedule ofReceivablesCalculation ofInterestGeneralRequirementLedgerTrial BalanceEnter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify thattotal interest revenue agrees with the trial balance.Dates: Jan 01to: Dec 31Garcia Co.Calculation of interest revenueFebruary 14 - Griffin note:PrincipalInterest rateNumber of days' interest to be recorded in Year 2 5 Received payment of principal plus interest from Collins for the August 7 note.1 Wrote off the Lee account against the Allowance for Doubtful Accounts.Nov.Dec.Schedule ofReceivablesCalculation ofInterestGeneralGeneralRequirementTrial BalanceJoumalLedgerEnter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify thattotal interest revenue agrees with the trial balance.Dates: Jan 01to: Dec 31Garcia Co.Calculation of interest revenueFebruary 14 - Griffin note:PrincipalInterest rateNumber of days' interest to be recorded in Year 2Number of days' interest to be recorded in Year 2PrincipalInterest rateNumber of days' interest to be recorded in Year 2Number of days' interest to be recorded in Year 2Number of days' interest to be recorded in Year 2Total interest revenue - Year 2

Interest Revenue - Interest Revenue is the revenue earned from the notes issued by the company.…

GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Garcia Company. Year 1 Accepted a $20,400, 68-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Griffin note. Dec. 16 31 Year 2 Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,eee, 6%, 90-day note in granting a time extension on the past-due account receivable from wright Co. 17 Accepted a $7, 200, 30-day, 18% note in granting wang Lee a time extension on her past-due account receivable. Apr. 16 Lee dishonored her note. 31 Wright Co. dishonored its note. May Aug. 7 Accepted a $22, eee, 90-day, 18% note in granting a time extension on the past-due account receivable of Collins Co. Sep. Nov. 3 Accepted a $11,400, 60-day, 18% note in granting Maria Gonzalez a time extension on his past-due account receivable. 2 Received payment of principal plus interest from Gonzalez for the September 3 note. 5 Received payment of principal plus interest from Collins for the August 7 note. Wrote off the Lee account against the Allowance for Doubtful Accounts. Nov. Dec.

GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Garcia Company. Year 1 Accepted a $20,400, 68-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Griffin note. Dec. 16 31 Year 2 Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,eee, 6%, 90-day note in granting a time extension on the past-due account receivable from wright Co. 17 Accepted a $7, 200, 30-day, 18% note in granting wang Lee a time extension on her past-due account receivable. Apr. 16 Lee dishonored her note. 31 Wright Co. dishonored its note. May Aug. 7 Accepted a $22, eee, 90-day, 18% note in granting a time extension on the past-due account receivable of Collins Co. Sep. Nov. 3 Accepted a $11,400, 60-day, 18% note in granting Maria Gonzalez a time extension on his past-due account receivable. 2 Received payment of principal plus interest from Gonzalez for the September 3 note. 5 Received payment of principal plus interest from Collins for the August 7 note. Wrote off the Lee account against the Allowance for Doubtful Accounts. Nov. Dec.

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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