Required information [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $26,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $20,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $18,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account receivable. 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 Note Tomas Company Note H Cheng Note General Journal Complete the table to calculate the interest amounts. Total Through Maturity Amount Accrued at December 31 Interest Recognized January 27 Principal Rate (%) Time Total interest
Required information [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $26,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $20,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $18,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account receivable. 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 Note Tomas Company Note H Cheng Note General Journal Complete the table to calculate the interest amounts. Total Through Maturity Amount Accrued at December 31 Interest Recognized January 27 Principal Rate (%) Time Total interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rahul
![Required information
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $26,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due
account receivable.
December 31 Prepared an adjusting entry to record the accrued interest on the Lee note.
January 27 Received Lee's payment for principal and interest on the note dated December 13.
March 3 Accepted a $20,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas
Company.
March 17 Accepted a $18,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account
receivable.
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 Note
Tomas
Company Note
H Cheng Note
General
Journal
Complete the table to calculate the interest amounts.
Total Through
Maturity
Amount
Accrued at
December 31
Interest
Recognized
January 27
Principal
Rate (%)
Time
Total interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2cfb225-8da6-40ea-9a49-1f2d1edf4a97%2F27ea4d85-c33b-42e1-b702-a9493ff4a2cd%2Fe30w8qf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $26,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due
account receivable.
December 31 Prepared an adjusting entry to record the accrued interest on the Lee note.
January 27 Received Lee's payment for principal and interest on the note dated December 13.
March 3 Accepted a $20,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas
Company.
March 17 Accepted a $18,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account
receivable.
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 Note
Tomas
Company Note
H Cheng Note
General
Journal
Complete the table to calculate the interest amounts.
Total Through
Maturity
Amount
Accrued at
December 31
Interest
Recognized
January 27
Principal
Rate (%)
Time
Total interest
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