Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthl
ID: 2551602 • Letter: P
Question
Problem 8-8A (Part Level Submission) Tardif Corporation adjusts its books monthly. On September 30, 2015, notes receivable include the following Maker Principal Interest Term Issue Date Mar. 31, 2015 May 31, 2015 $18,800 6% 16,800 3% 4,600 6% 20,500 4% 7 months 18 months 2 months 16 months RES Inc. Ihara Ltd Aug. 31, 2015 Dragon Sept. 30, Limited MGH Corp 2015 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 ni. In October, the following selected transactions were completed Oct. 1 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 full 31 Accrued interest on the Ihara and MGH notes. 31 Analyzed the remaining notes for collectibility. Estimated that $16,800 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara Your answer is partially correct. Try again. Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2015. (Round answers to 0 decimal places, e.g. 5,275.) Balance in the Interest Receivable Balance in the Notes Receivable 60700Explanation / Answer
Calculate balance of interest receivable :
Balance in the interest receivable = $755
Balance in the notes receivable = $60700
Interest receivable RES Inc. (18800*6%*6/12) 564 Ihara Ltd (16800*3%*4/12) 168 Dragon limited (4600*6%*1/12) 23 MGH Copr. (20500*4%*0/12) 0 Total 755