Year 1 December 16 Accepted a(n) $10,000, 60-day, 9% note in…
Year 1
| December 16 | Accepted a(n) $10,000, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable. |
|---|---|
| December 31 | Made an adjusting entry to record the accrued interest on the Todd note. |
Year 2
| February 14 | Received Todd’s payment of principal and interest on the note dated December 16. |
|---|---|
| March 2 | Accepted a(n) $8,000, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company. |
| March 17 | Accepted a $2,600, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. |
| April 16 | Privet dishonored her note. |
| May 31 | Midnight Company dishonored its note. |
| August 7 | Accepted a(n) $7,650, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Company. |
| September 3 | Accepted a $2,700, 60-day, 11% note in granting Noah Carson a time extension on his past-due account receivable. |
| November 2 | Received payment of principal plus interest from Carson for the September 3 note. |
| November 5 | Received payment of principal plus interest from Mulan for the August 7 note. |
| December 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, Year 1.
1-b. Use the calculated value to prepare journal entries for Year 1 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare journal entries for Year 2 transactions.
2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?
Excellent Grades Guaranteed! (A+ or B Minimum)