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.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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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
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