The following selected transactions are from Ohlm Company: (Do not round interme

Question

The following selected transactions are from Ohlm Company: (Do not round intermediate calculations and round your final answers to nearest whole number. Use 360 days a year.)

2015

2016

  

Required:

1-a. First, complete the table below to calculate the interest amount at December 31.

          D.Todd Note - December 16, 2015

1-b. Use the calculated value to prepare your journal entries for 2015 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 2016 transactions.

Dec. 16 Accepted a $12,400, 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.

Explanation / Answer

OHLM COMPANY General journal for the year 2015 Date Account Title Debit credit Dec.16, 2015 Note Receivable 12400 Accounts Receivable 12400 (Note receivable for amount due from Danny Todd) Dec.31, 2015 Interest Receivable 46.50 Interest Income 46.50 (Interest for 16 days on Danny Todd Note) OHLM COMPANY General journal for the year 2016 Date Account Title Debit credit Feb.14, 2016 Cash 12586.00 Note Receivable 12400.00 Interest Receivable 46.50 Interest Income 139.50 (Cash received from Danny Todd on note receivable) Mar.2,2016 Note Receivable 6200 Accounts Receivable 6200.00 (90-day, 9% Note received from Midnight Co. For the amount due) Mar.17, 2016 Note Receivable 3700 Accounts Receivable 3700 (30-day , 7% Note received from Ava Privet for the amount due) Apr.16,2016 Accounts Receivable 3700 Note Receivable 3700 (Note dishonoured by Ava Privet ) May.31, 2016 Accounts Receivable 6339.50 Note Receivable 6200.00 Interest Income 139.50 (Note receivable dishounoured by Midnight Co. Plus interest      @9% for 90 days) July.16,2016 Cash 6409.82 Accounts Receivable 6339.50 Interest Income 70.32 (Amount collected from Midnight Co. Along with interest due) Aug.7, 2016 Note Receivable 8400 Accounts Receivable 8400 (90-day , 10% Note received from Mulan Co.) Sept.3, 2016 Note Receivable 3370 Accounts Receivable 3370 (60-day , 11% note received from Noah Carson) Nov.2, 2016 Cash 3431.78 Interest Income 61.78 Note Receivable 3370.00 (Amount collected from Noah Carson on note payable) Nov.5, 2016 Cash 8610 Interest Income 210 Note Receivable 8400 (Amount collected from Mulan Co.along with interest) Dec.1, 2016 Allowance for Doubtful accounts 3700 Accounts Receivable 3700 (Write off of amount due from Privet)

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