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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

FINANCIAL ACCOUNTING
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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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 = $38
Transcribed Image Text:JOURNAL Date Particulars Debit Amt ($) 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
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
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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