The following selected transactions are from Ohlm Company. (Use 360 days a year.
ID: 2601782 • Letter: T
Question
The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $11,200, 60-day, 7 note dated this day in granting Danny Todd a tine 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) $6,600, 78, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,000, 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 dishonored note plus acerued interest to Midnight Co. 's accounts receivable. beyond maturity at 78. receivable of Mulan Co. account receivable. 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) $8,800, 90-day, 10 note dated this day in Scanting a tine extension on the past-due account Sep. 3 Accepted a(n) S2,8 40, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due Nov. 2 Received payment of principal plus interest from Carson for the Sept Nov. 5 Received payment of principal plus interest from Nula ember 3 note. n 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
1a
First complete the table below to calculate the interest amount of december 31 2016
Total total through Maturity
Interest recognized december 31
Principal
11200
11200
Rate
7%
7%
Time
60/360
15/360
Total interest
131
33
1b
Use calculated values to prepare journal entries
Date
Particulars
Debit
Credit
Dec-16
Notes receivable - D todd
131
Accounts receivable - D todd
131
Dec-31
Interest receivable
33
Interest revenue
33
1c
First, complete the table below to calculate the interest amounts
Midnight co Mar 2 2017
A pivet note march 17 2017
Multan note August 7 2017
Midnight co Mayy 31 2017
N carson sept 3 2017
6600
3000
8800
6716
2840
7%
7%
10%
7%
9%
90/360
30/360
90/360
46/360
60/360
116
18
220
60
43
1d
Feb-14
Cash
11363
Interest revenue
131
Interest receivable
33
Notes receivable- D todd
11200
Mar-02
Notes receivable - midnoght Co
6600
Accounts receivable - midnight Co
6600
Mar-17
Notes receivable - A Pivet
3000
Accounts receivable - A Pivet
3000
Apr-16
Accounts receivable - A Pivet
3018
Interest revenue
18
Notes Receivable - A pivet
3000
May-31
Accounts receivable - Midnight co
6716
Interest revenue
116
Notes Receivable - Midnight co
6600
Jul-16
Cash
6776
Interest revenue
60
Accounts receivable - midnight co
6716
Aug-07
Notes receivable - Mulan
8800
Accounts receivable - Mulan
8800
Sep-03
Notes receivable - N carson
2840
Accounts receivable - N carson
2840
Nov-02
Cash
2883
Interest revenue
43
Notes Receivable - N carson
2840
Nov-05
Cash
9020
Interest revenue
220
Notes Receivable - Mulan
8800
Dec-01
Allowance for Doubtful accounts
3018
Accounts receivable - A pivet
3018
1a
First complete the table below to calculate the interest amount of december 31 2016
Total total through Maturity
Interest recognized december 31
Principal
11200
11200
Rate
7%
7%
Time
60/360
15/360
Total interest
131
33
1b
Use calculated values to prepare journal entries
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