Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthl
ID: 2551255 • Letter: P
Question
Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthly. On September 30, 2015, notes recelvable include the following: Issue DateMaker Principal Interest Term Mar. 31, 2015 RES Inc. May 31, 2015 Ihara Ltd. $16,200 6% 7months 18,800 5% 18months Aug. 31, 2015 Dragon United 6,000 696 2months 21,100 4% 16months Sept. 30, 2015 MGH Corp. 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 31 Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future. 31 The RES note matured and was received in ful. 31 Accrued interest on the Ihara and MGH notes. 31 Analyzed the remaining notes for collectibility. Estimated that $18,800 of notes may not be collectible in the future because of significant labour issues currently being experienced by Oct. 1 hara Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2015. (Round answers to O decimal places, .5,275. Balance in the Interest Recelvable Balance in the Notes Receivable Attempts: o of 2 used sE FOR LATER SUBMIT ANSWERExplanation / Answer
Balance Interest Receivable = MGH Corp + Dragon Limited
= ($ 21,100 * 4 /100)*1/12 + ($ 6000 * 6/100)*1/12
= $ 70 + $ 30
= $ 100
Balance Notes Recivable = MGH Corp + Dragon Limited
= $ 21,100 + $ 6,000
= $ 27,100
Because the RES Inc. Notes Recevied and Ihara Note Receivable is not collectible in near future but the dragon limited default but collectible there for taken for the balance