need help with 1D, Feb 14.! Received Todd’s payment of principal and interest on the note dated December 16.
The following transactions are from Ohlm Company. (Use 360 days a year.)
Year 1
Dec. | 16 | Accepted a $10,700, 60-day, 8% note in granting Danny Todd a time extension on his past-due |
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31 | Made an |
Year 2
Feb. | 14 | Received Todd’s payment of principal and interest on the note dated December 16. | ||
Mar. | 2 | Accepted a(n) $6,600, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. | ||
17 | Accepted a(n) $3,300, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. | |||
Apr. | 16 | Privet dishonored her note. | ||
May | 31 | Midnight Co. dishonored its note. | ||
Aug. | 7 | Accepted a(n) $7,900, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. | ||
Sep. | 3 | Accepted a(n) $3,210, 60-day, 11% note in granting Noah Carson a time extension on his past-due 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, Year 1.
1-b. Use the calculated value to prepare your
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your 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?
As per the accrual principal, revenue and expenses need to be accounted in the period in which they accrue.
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