The following selected transactions are from Ohlm Company. (Use 360 days a year.
ID: 2555865 • Letter: T
Question
The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $13,600, 60-day, 9% note dated this day in granting Danny Todd a time extension on his past-due account receivable 31 Made an adjusting entry to record the accrued interest on the Todd note 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) 7,700, 98, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co 17 Accepted a(n) $2,800, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable Apr. 16 Privet dishonored her note when presented for payment. May 31 Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days Aug. 7 Accepted a(n) $8,600, 90-day, 10% note dated this day in granting a time extension on the past-due account Sep. 3 Accepted a(n) $3,700, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due dishonored note plus accrued interest to Midnight Co.'s accounts receivable beyond maturity at 9%. receivable of Mulan Co. account receivable. Nov. 2 Received payment of principal plus interest from Carson for the September 3 note. Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts Required 1-a. First,complete the table below to calculate the interest amount at December 31, 2016. 1-b. Use the calculated value to prepare your journal entries for 2016 transactions 1-c. First, complete the table below to calculate the interest amounts 1-d. Use those calculated values to prepare your journal entries for 2017 transactions.Explanation / Answer
Answer 1-a. Danny Todd - Dec 16, 2016 Principal 13,600.00 Rate 9% Time 15 Days Total Interest 51.00 Answer 1-b. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 16-Dec-16 Notes Receivable - Danny Todd 13,600.00 Accounts Receivable - Danny Todd 13,600.00 (record the note received against balance) 31-Dec-16 Interest Receivable 51.00 Interest Revenue 51.00 (record the interest accrued) Answer 1-c. Danny Todd - Dec 16, 2017 Midnight Co. - Mar 2, 2017 Ava Pivet - Mar 2, 2017 Midnight Co. - May 31, 2017 Mulan Co. - Aug 7, 2017 Noah Carson - Sep 3, 2017 Principal 13,600.00 7,700.00 2,800.00 7,873.25 8,600.00 3,700.00 Rate 9% 9% 7% 9% 10% 9% Time 45 Days 90 Days 30 Days 46 Days 90 Days 60 Days Total Interest 153.00 173.25 16.33 90.54 215.00 55.50 Answer 1-d. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 14-Feb-17 Cash 13,804.00 Notes Receivable - Danny Todd 13,600.00 Interest Receivable 51.00 Interest Revenue 153.00 (Record the cash received) 2-Mar-17 Notes Receivable - Midnight Co 7,700.00 Accounts Receivable - Midnight Co 7,700.00 (record the note received against balance) 2-Mar-17 Notes Receivable - Ava Pivet 2,800.00 Accounts Receivable - Ava Pivet 2,800.00 (record the note received against balance) 16-Apr-17 Accounts Receivable - Ava Pivet 2,816.33 Notes Receivable - Ava Pivet 2,800.00 Interest Revenue 16.33 (record the note dishonoured) 31-May Accounts Receivable - Midnight Co 7,873.25 Notes Receivable - Midnight Co 7,700.00 Interest Revenue 173.25 (record the note dishonoured) 16-Jul-17 Cash 7,963.79 Accounts Receivable - Midnight Co 7,873.25 Interest Revenue 90.54 (Record the cash received) 7-Aug-17 Notes Receivable - Mulan Co 8,600.00 Accounts Receivable - Mulan Co 8,600.00 (record the note received against balance) 3-Sep-17 Notes Receivable - Noah Carson 3,700.00 Accounts Receivable - Noah Carson 3,700.00 (record the note received against balance) 2-Nov-17 Cash 3,755.50 Notes Receivable - Noah Carson 3,700.00 Interest Revenue 55.50 (Record the cash received) 5-Nov-17 Cash 8,815.00 Notes Receivable - Mulan Co 8,600.00 Interest Revenue 215.00 (Record the cash received) 1-Dec-17 Allowance for Doubtful Account 2,816.33 Accounts Receivable - Ava Pivet 2,816.33 (record the amount written off)