GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Turner Company. Year 1 Dec. 16 Accepted a $22,800, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Nguyen note. Year 2 Feb. 14 Received Nguyen's payment of principal and interest on the note dated December 16. Accepted a $8,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Lee Co. Mar. 17 Accepted a $15,600, 30-day, 78 note in granting Spencer Lauer a time extension on her past-due account receivable. Apr. 16 Lauer dishonored her note. May Aug. 31 Lee Co. dishonored its note. Accepted a $22,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Perez Co. 7 Sep. 3. Accepted a $12,600, 60-day, 10% note in granting Kay Wright a time extension on his past-due account receivable. Received payment of principal plus interest from Wright for the September 3 note. Received payment of principal plus interest from Perez for the August 7 note. Wrote off the Lauer account against the Allowance for Doubtful Accounts. Nov. Nov. Dec. General General Schedule of Calculation of Requirement Trial Balance Receivables Interest Journal Ledger Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance. Dates: Jan 01 to: Dec 31 Turner Co. Calculation of interest revenue
GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Turner Company. Year 1 Dec. 16 Accepted a $22,800, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Nguyen note. Year 2 Feb. 14 Received Nguyen's payment of principal and interest on the note dated December 16. Accepted a $8,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Lee Co. Mar. 17 Accepted a $15,600, 30-day, 78 note in granting Spencer Lauer a time extension on her past-due account receivable. Apr. 16 Lauer dishonored her note. May Aug. 31 Lee Co. dishonored its note. Accepted a $22,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Perez Co. 7 Sep. 3. Accepted a $12,600, 60-day, 10% note in granting Kay Wright a time extension on his past-due account receivable. Received payment of principal plus interest from Wright for the September 3 note. Received payment of principal plus interest from Perez for the August 7 note. Wrote off the Lauer account against the Allowance for Doubtful Accounts. Nov. Nov. Dec. General General Schedule of Calculation of Requirement Trial Balance Receivables Interest Journal Ledger Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance. Dates: Jan 01 to: Dec 31 Turner Co. Calculation of interest revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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GLO701 - Based on Problem 7-5A LO C2, C3, P4
The following selected transactions are from Turner Company.
Year 1
Dec. 16 Accepted a $22,800, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account
receivable.
31
Made an adjusting entry to record the accrued interest on the Nguyen note.
Year 2
Feb. 14
Received Nguyen's payment of principal and interest on the note dated December 16.
Accepted a $8,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Lee
Mar.
Co.
Accepted a $15,600, 30-day, 7% note in granting Spencer Lauer a time extension on her past-due account
receivable.
Lauer dishonored her note.
Lee Co. dishonored its note.
17
Apr. 16
May 31
7
Accepted a $22,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Perez
Co.
Accepted a $12,600, 60-day, 10% note in granting Kay Wright a time extension on his past-due account
receivable.
Aug.
Sep.
Received payment of principal plus interest from Wright for the September 3 note.
Received payment of principal plus interest from Perez for the August 7 note.
Wrote off the Lauer account against the Allowance for Doubtful Accounts.
Nov.
Nov.
Dec.
1
General
General
Schedule of
Calculation of
Requirement
Trial Balance
Journal
Ledger
Receivables
Interest
Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that
total interest revenue agrees with the trial balance.
Dates: Jan 01
to: Dec 31
Turner Co.
Calculation of interest revenue
...
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Transcribed Image Text:repruary 14 - Nguyen note:
Principal
Interest rate
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Principal
Interest rate
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Number of days' interest to be recorded in Year 2
Total interest revenue - Year 2
24
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