Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthl

Question

Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthly. On September 30, 2015, notes receivable include the following: Issue Date Mar. 31, 2015 May 31, 2015 Aug. 31, 2015 Sept. 30, 2015 MGH Corp Maker Principal Interest Term RES Inc. Ihara Ltd. Dragon Limited $18,200 17,400 4,600 19,800 590 6% 9% 4% 7 months 18months 2months 16 months Interest is due at maturity for the RES and Dragon notes. Interest is due on the first day of the month for the Ihara and MGH notes. At September 30, the balance in the Allowance for Doubtful Notes account is nil. In October, the following selected transactions were completed. Received the interest due from Ihara and MGH. Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future The RES note matured and was received in full. Accrued interest on the Ihara and MGH notes. Analyzed the remaining notes for collectibility. Estimated that $17,400 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara Oct. 1 31 31 31 31 Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2015. (Round answers to O decimal places, e.g. 5,275) Balance in the Interest Receivable Balance in the Notes Receivable

Explanation / Answer

maker RES Inc 18,200*5%*1/12= 76 Ihara ltd 17400*6%*1/12= 87 Dragon limited 4,600*9%*1/12= 35 MGH Corp 19800*4%*1/12= 0 balance in the interest receivable 197 (interest on MGH corp is zero since created on last day of adjustment) maker RES Inc 18,200 Ihara ltd 17,400 Dragon limited 4,600 MGH Corp 19,800 Balance in note receivable 60,000

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