Required information [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $28,000, 45-day, 4% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $15,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. Note: Do not round intermediate calculations. Use 360 days a year. Complete this question by entering your answers in the tabs below. Tomas Company Note First, complete the table below to calculate the interest amounts. Total Through Maturity M Lee Note Principal Rate (%) Time Total interest H Cheng Note General Journal
Required information [The following information applies to the questions displayed below.] Following are transactions of Danica Company. December 13 Accepted a $28,000, 45-day, 4% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. January 27 Received Lee's payment for principal and interest on the note dated December 13. March 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. March 17 Accepted a $15,000, 30-day, 10 % note in granting H. Cheng a time extension on his past-due account receivable. April 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. Note: Do not round intermediate calculations. Use 360 days a year. Complete this question by entering your answers in the tabs below. Tomas Company Note First, complete the table below to calculate the interest amounts. Total Through Maturity M Lee Note Principal Rate (%) Time Total interest H Cheng Note General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
Section: Chapter Questions
Problem 2AP
Related questions
Question
8
![Required information
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $28,000, 45-day, 4% note in granting Miranda Lee a time
extension on her past-due account receivable.
December 31 Prepared an adjusting entry to record the accrued interest on the Lee
note.
January 27 Received Lee's payment for principal and interest on the note dated December 13.
March 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due
account receivable of Tomas Company.
March 17
Accepted a $15,000, 30-day, 10% note in granting H. Cheng a time extension on his
past-due account receivable.
April 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Complete the table to calculate the interest amounts and use those calculated values to prepare your journal
entries.
Note: Do not round intermediate calculations. Use 360 days a year.
Complete this question by entering your answers in the tabs below.
Tomas
Company Note
First, complete the table below to calculate the interest amounts.
Total Through
Maturity
M Lee Note
Principal
Rate (%)
Time
Total interest
H Cheng Note
General
Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc6f89fc-e3a8-4a16-8065-cdd376d6b035%2Ff298118e-48bc-435a-a503-1b5d97e01482%2F3dvqx6e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Following are transactions of Danica Company.
December 13 Accepted a $28,000, 45-day, 4% note in granting Miranda Lee a time
extension on her past-due account receivable.
December 31 Prepared an adjusting entry to record the accrued interest on the Lee
note.
January 27 Received Lee's payment for principal and interest on the note dated December 13.
March 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due
account receivable of Tomas Company.
March 17
Accepted a $15,000, 30-day, 10% note in granting H. Cheng a time extension on his
past-due account receivable.
April 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Complete the table to calculate the interest amounts and use those calculated values to prepare your journal
entries.
Note: Do not round intermediate calculations. Use 360 days a year.
Complete this question by entering your answers in the tabs below.
Tomas
Company Note
First, complete the table below to calculate the interest amounts.
Total Through
Maturity
M Lee Note
Principal
Rate (%)
Time
Total interest
H Cheng Note
General
Journal
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