Year 1 General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries.  Verify that total interest revenue agrees with the trial balance. Dec.   16     Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable.     31     Made an adjusting entry to record the accrued interest on the Lee note. Year 2 Feb.   14     Received Lee’s payment of principal and interest on the note dated December 16. Mar.   2     Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co.     17     Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Apr.   16     Allen dishonored her note. May   31     Taylor Co. dishonored its note. Aug.   7     Accepted a $12,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Carter Co. Sep.   3     Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable. Nov.   2     Received payment of principal plus interest from Taylor for the September 3 note. Nov.   5     Received payment of principal plus interest from Carter for the August 7 note. Dec.   1     Wrote off the Allen account against the Allowance for Doubtful Accounts.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Year 1

General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Clark Co.

Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries.  Verify that total interest revenue agrees with the trial balance.

Dec.   16     Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable.
    31     Made an adjusting entry to record the accrued interest on the Lee note.


Year 2

Feb.   14     Received Lee’s payment of principal and interest on the note dated December 16.
Mar.   2     Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co.
    17     Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable.
Apr.   16     Allen dishonored her note.
May   31     Taylor Co. dishonored its note.
Aug.   7     Accepted a $12,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Carter Co.
Sep.   3     Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable.
Nov.   2     Received payment of principal plus interest from Taylor for the September 3 note.
Nov.   5     Received payment of principal plus interest from Carter for the August 7 note.
Dec.   1     Wrote off the Allen account against the Allowance for Doubtful Accounts.
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