Question
Following are selected transactions of Danica Company for 2016.
Following are selected transactions of Danica Company for 2016.
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.)
Dec. 13 Accepted a $9,500, 45-day, 8% 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. Following are selected transactions of Danica Company for 2016 Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. 1.25 points 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.) eBook Complete this question by entering your answers in the tabs below Ask nterest Amounts General Journal Print Complete the table to calculate the interest amounts at December 31st. References Interest Total Through Recognized Maturity December 31 Principal Rate (%) Time Total interest Interest Amounts General Journal>
Explanation / Answer
Req A: Total Through Interest maturity Recognized 31-Dec Principal 9500 9500 Rate % 8% 8% Time 45 days 18 days Total Interest 95 38 Req B: Interest receivable Dr. 38 Interest revenue 38