Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthl
ID: 2551554 • Letter: P
Question
Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthly. On September 30, 2015, notes receivable include the following: Issue Date Maker Principal Interest Term 7 months 19,400 7% 18 months Aug. 31, 2015 Dragon Limited 5,200 9% 2 months 20,300 8% 16 months $19,400 7% Mar. 31, 2015 May 31, 2015 RES Inc. Ihara Ltd 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 Oct. 1 Received the interest due from Ihara and MGH. 31 31 31 31 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 $19,400 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara.Explanation / Answer
Balance in the Interest receivable is $291 (Ihara -19400 X3% X6/12)
Interest is not due for balance notes.
Issue date Maker Principal Interest Term Due date Interest due on Sept. 30, 2015 Mar.31,2015 RES Inc. 19400 6% 7 Months Oct.31,2015 Mar.31,2015 Ihara Ltd. 19400 3% 18 Months Sep.30,2016 291 Aug 31,2015 Dragon Limited 5200 6% 2 Months Oct.31,2015 Sept. 30,2015 MGH Corp. 20300 4% 16 Months Jan.31,2017 64300 291