Required Use the following information for the Exercises 18-19 below. (Algo) [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $18,000, 45-day, 4% 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. cise 7-19 (Algo) Notes receivable transactions LO P4 ary 27 Received Lee's payment for principal and interest on the note dated December 13. arch 3 Accepted a $12,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. rch 17 Accepted a $15,000, 30-day, 6% note in granting H. Cheng a time extension on his past-due account receivable. ril 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
Use the following information for the Exercises 18-19 below. (Algo)
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $18,000, 45-day, 4% 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.
Exercise 7-19 (Algo) Notes receivable transactions LO P4
January 27 Received Lee's payment for principal and interest on the note dated
December 13.
March 3 Accepted a $12,000, 10%, 90-day note in granting a time extension on the
past-due account receivable of Tomas Company.
March 17 Accepted a $15,000, 30-day, 6% 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
General
Tomas H Cheng
Company Note
Note
Journal
Complete the table to calculate the interest amounts.
Principal
Rate (%)
Time
Total
interest
Amount
Accrued Interest
Total
Through
at
Recognized
Maturity December January 27
31
Transcribed Image Text:Required information Use the following information for the Exercises 18-19 below. (Algo) [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $18,000, 45-day, 4% 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. Exercise 7-19 (Algo) Notes receivable transactions LO P4 January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $12,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $15,000, 30-day, 6% 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 General Tomas H Cheng Company Note Note Journal Complete the table to calculate the interest amounts. Principal Rate (%) Time Total interest Amount Accrued Interest Total Through at Recognized Maturity December January 27 31
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