The following transactions are from Springer Company. Year 1 Nov. 1 Accepted a $4,800, 90-day, 8% note in granting Steve Julian a time extension on his past-due account receivable. Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note. Year 2 Jan. 30 Received Julian’s payment for principal and interest on the note dated November 1. Feb. 28 Accepted a $12,600, 30-day, 8% note in granting a time extension on the past-due account receivable from King Co. Mar. 1 Accepted a $6,200, 60-day, 12% note in granting Myron Shelley a time extension on his past- due account receivable. 30 The King Co. dishonored its note. Apr. 30 Received payment of principal plus interest from M. Shelley for the March 1 note. June 15 Accepted a $2,000, 72-day, 8% note in granting a time extension on the past-due account receivable of Ryder Solon. 21 Accepted a $9,500, 90-day, 8% note in granting J. Felton a time extension on his past-due account receivable. Aug. 26 Received payment of principal plus interest from R. Solon for the June 15 note. Sep. 19 Received payment of principal plus interest from J. Felton for the June 21 note. Nov. 30 Wrote off King’s account against the Allowance for Doubtful Accounts. Required 1. Prepare journal entries to record these transactions and events. Analysis Component 2. If Springer 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 Springer Company.
Year 1
Nov. 1 Accepted a $4,800, 90-day, 8% note in granting Steve Julian a time extension on his past-due
Dec. 31 Made an
Year 2
Jan. 30 Received Julian’s payment for principal and interest on the note dated November 1.
Feb. 28 Accepted a $12,600, 30-day, 8% note in granting a time extension on the past-due account
receivable
from King Co.
Mar. 1 Accepted a $6,200, 60-day, 12% note in granting Myron Shelley a time extension on his
past-
due account receivable.
30 The King Co. dishonored its note.
Apr. 30 Received payment of principal plus interest from M. Shelley for the March 1 note.
June 15 Accepted a $2,000, 72-day, 8% note in granting a time extension on the past-due account
receivable
of Ryder Solon.
21 Accepted a $9,500, 90-day, 8% note in granting J. Felton a time extension on his past-due
account
receivable.
Aug. 26 Received payment of principal plus interest from R. Solon for the June 15 note.
Sep. 19 Received payment of principal plus interest from J. Felton for the June 21 note.
Nov. 30 Wrote off King’s account against the Allowance for Doubtful Accounts.
Required
1. Prepare
Analysis Component
2. If Springer pledged its receivables as security for a loan from the bank, where on the financial statements
does it disclose this pledge of receivables?
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