Refer to the information in Exercise 9-10 and prepare the journal entries for the following selected trans- actions of Danica Company for 2015. Exercise 9-11 Notes receivable transactions P3 2015 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Check Jan. 27, Dr. Cash Mar. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past- $9,595 due account receivable of Tomas Company. 17 Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 Cheng dishonors his note when presented for payment. May 1 Wrote off the Cheng account against the Allowance for Doubtful Accounts. Received the Tomas payment for principal and interest on the note dated March 3. June 1, Dr. Cash June 1 $5, 125
Refer to the information in Exercise 9-10 and prepare the journal entries for the following selected trans- actions of Danica Company for 2015. Exercise 9-11 Notes receivable transactions P3 2015 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Check Jan. 27, Dr. Cash Mar. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past- $9,595 due account receivable of Tomas Company. 17 Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 Cheng dishonors his note when presented for payment. May 1 Wrote off the Cheng account against the Allowance for Doubtful Accounts. Received the Tomas payment for principal and interest on the note dated March 3. June 1, Dr. Cash June 1 $5, 125
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Transcribed Image Text:JOURNAL
Date
Particulars
Debit Amt ($)
Credit Amt ($)
2014
Note
Dec 13
9,500
receivables. Dr
Тo aсcount
9,500
receivables
(Note
receivables
received against
account
receivables)
Accrued interest.
38
Dec 31
Dr
To interest
38
revenue
(Interest for 18
days due on
note receivable)
Calculation of outstanding interest = 9500 * 8% * 18/360 = $38
Transcribed Image Text:Prepare journal entries for the following selected transactions of Danica Company for 2014.
Exercise 9-10
Notes receivable
2014
transactions
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time exten- C2
sion on her past-due account receivable.
31 Prepared an adjusting entry to record the accrued interest on the Lee note.
Check Dec.31, Cr.
Interest Revenue $38
Refer to the information in Exercise 9-10 and prepare the journal entries for the following selected trans-
actions of Danica Company for 2015.
Exercise 9-11
Notes receivable
transactions P3
2015
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past-
Check Jan. 27, Dr. Cash
$9,595
due account receivable of Tomas Company.
17 Accepted a $2,000, 30-day, 9% note dated March 17 in granting H. Cheng a time extension on
his past-due account receivable.
Apr. 16 Cheng dishonors his note when presented for payment.
May 1 Wrote off the Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
June 1, Dr. Cash
$5,125
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