The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a $10, 800, 60-day, 8s note in granting Danny Todd a time extenaion on hie past-due sccount receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Tebruary 14 Received Todd's payment of principal and interest on the note dated Decenber 16. March 2 Accepted a $6,100, , 90-day note in granting a tine extension on the past-due account receivable from Midnight Company. March 17 Accepted a $2,400, 30-day, 78 note in granting Ava Privet a tine extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. Auguat 7 Accepted a $7,440, 90-day, 10s note in granting a tine extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2, 100, 60-day, 104 note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received paynent of prineipal plus interent fron Carson for the September 3 note. Novenber 5 Received payment of prineipal plus interest fron Hulan for the August 7 note. Decenber 1 Wrote oft the Privet account against the Allowance for Doubtful Accounte. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year 1. 1-b. Use the calculated value to prepare your journal entries for Year 1 transactions. 1-c. First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for Year 2 transactions. 2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 December 16 Accepted a $10, 800, 60-day, 8s note in granting Danny Todd a time extenaion on hie past-due sccount receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Tebruary 14 Received Todd's payment of principal and interest on the note dated Decenber 16. March 2 Accepted a $6,100, , 90-day note in granting a tine extension on the past-due account receivable from Midnight Company. March 17 Accepted a $2,400, 30-day, 78 note in granting Ava Privet a tine extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. Auguat 7 Accepted a $7,440, 90-day, 10s note in granting a tine extension on the past-due account receivable of Mulan Company. September 3 Accepted a $2, 100, 60-day, 104 note in granting Noah Carson a time extension on his past-due account receivable. November 2 Received paynent of prineipal plus interent fron Carson for the September 3 note. Novenber 5 Received payment of prineipal plus interest fron Hulan for the August 7 note. Decenber 1 Wrote oft the Privet account against the Allowance for Doubtful Accounte. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year 1. 1-b. Use the calculated value to prepare your journal entries for Year 1 transactions. 1-c. First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for Year 2 transactions. 2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 5P
Related questions
Question
please answer 1A and 1C only

Transcribed Image Text:The following transactions are from Ohlm Company. (Use 360 days a year.)
Year 1
December 16 Accepted a $10,800, 60-day, 81 note in granting Danny Todd a time extension on his past-due account
receivable.
December 31 Made an adjusting entry to record the accrued interest on the Todd note.
Year 2
February 14 Received Todd's payment of principal and interest on the note dated Decenber 16.
March 2 Aocepted a $6,100, 8s, 90-day note in granting a time extension on the past-due account receivable from
Midnight Company.
March 17 Accepted a $2,400, 30-day, 7 note in granting Ava Privet a tine extension on her past-due account
receivable.
April 16 Privet dishonored her note.
May 31 Midnight Company dishonored its note.
August 7 Accepted a $7,440, 90-day, 10 note in granting a tine extension on the past-due account receivable of Mulan
Сопpany.
September 3 Accepted a $2,100, 60-day, 104 note in granting Noah Carson a time extension on his past-due account
receivable.
Novenber 2 Received payment of principal plus interent fron Carson for the September 3 note.
Novenber 5 Received payment of prineipal plus interest fron Mulan for the August 7 note.
Decenber 1 Wrote off the Privet account against the Allowance for Doubtful Accounts.
Required:
1-a. First, complete the table below to calculate the interest amount at December 31, Year 1.
1-b. Use the calculated value to prepare your journal entries for Year 1 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for Year 2 transactions.
2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge
of receivables?

Transcribed Image Text:Required 1A
Required 1B
Required 1C
Required 1D
Required 2
First, complete the table below to calculate the interest amount at December 31, Year 1.
Interest
Total
through
maturity
recognized
December
31
Principal
Rate (%)
Time
Total interest
Required 1A Required 1B
Required 1C
Required 1D
Required 2
First, complete the table below to calculate the interest amounts.
Total through maturity
N. Carson
Midnight
Company
Note March
A. Privet Note
Mulan Note -
Note -
-March 17,
Year 2
August 7,
Year 2
September 3,
Year 2
2, Year 2
Principal
Rate (%)
Time
Total Interest
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