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 account receivable.     31   Made an adjusting entry to record the accrued interest on the Todd note. 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 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 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 account receivable.
    31   Made an adjusting entry to record the accrued interest on the Todd note.


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 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 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?

Required 1A
Required 18 Required 10 Required 10 Required 2
Use those calculated values to prepare your journal entries for Year 2 transactions.
View transaction list
Journal entry worksheet
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8
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10
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1
Received Todd's payment of principal and interest on the note dated December
16.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Feb 14
Cash
10,879
10,700
Notes receivable-D. Todd
Interest revenue
Interest receivable
36
Record entry
Clear entry
View general journal
< Required 1C
Required 2 >
Transcribed Image Text:Required 1A Required 18 Required 10 Required 10 Required 2 Use those calculated values to prepare your journal entries for Year 2 transactions. View transaction list Journal entry worksheet 2 3 5 6 8 9 10 > 1 Received Todd's payment of principal and interest on the note dated December 16. Note: Enter debits before credits. Date General Journal Debit Credit Feb 14 Cash 10,879 10,700 Notes receivable-D. Todd Interest revenue Interest receivable 36 Record entry Clear entry View general journal < Required 1C Required 2 >
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As per the accrual principal, revenue and expenses need to be accounted in the period in which they accrue.

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