Please explain Following are selected transactions of Danica Company for 2016. D

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Please explain

Following are selected transactions of Danica Company for 2016. Dec. 13 Accepted a $21,000, 45-day, 88 note dated December 13 in granting Miranda Lee a time extension on her past- due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Complete the table to calculate the interest amounts at December 31St and use the calculated value to prepare your journal entries (Do not round your intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below Interest General Amounts Journal st Complete the table to calculate the interest amounts at December 31 Interest Total Through Recognized Maturity December 31 Principal Rate (%) Time Total interest S 21,000 8% 45/360 Interest Amounts General Journal

Explanation / Answer

Total Through Maturity Interest Recognized December 31 Principal $21,000 $21,000 Rate (%) 8% 8% Time 45/360 18/360 Total interest $                                                                 210 $                                 84 21000 x 8% x 45/360 21000 x 8% x 18/360 Date General Journal Debit Credit Dec 13, 2016 Notes Receivable - Miranda Lee $                         21,000 Accounts receivable-Miranda Lee $        21,000 Dec 31, 2016 Interest Receivable $                                 84 Interest Revenue $                84

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