please show me how to do this ACCOUNTING exercise?

2012

Dec. 16 Accepted a $10,800, 60-day, 8% 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.

2013

Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16.

Mar. 2 Accepted an $6,100, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.

17 Accepted a $2,400, 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.

June 2 Midnight Co. refuses to pay the note that was due to Ohlmeyer Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.’s accounts receivable.

July 17 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.

Aug. 7 Accepted an $7,450, 90-day, 10% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.

Sept. 3 Accepted a $2,100, 60-day, 10% note dated this day 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 Allowance for Doubtful Accounts.

Prepare journal entries to record these transactions and events. (Round amounts to the nearest dollar.)

2 Answers

  • 2012

    Dec. 16 Accepted a $10,800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable.

    Dr Notes Receivable–T Duke 10,800

    Cr Accounts Receivable 10,800

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

    Dr Interest Receivable 36 (10,800 x 8% x 15/360)

    Cr Interest Revenue 36

    2013

    Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16.

    Dr Cash 10,944

    Cr Interest Receivable 36

    Cr Interest Revenue 108 (10,800 x 8% x 45/360)

    Cr Notes Receivable 10,800

    Mar. 2 Accepted an $6,100, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.

    Dr Notes Receivable–Midnight Co 6,100

    Cr Accounts Receivable–Midnight Co 6,100

    17 Accepted a $2,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.

    Dr Notes Receivable 2,400

    Cr Accounts Receivable 2,400

    Apr. 16 Privet dishonored her note when presented for payment.

    Dr Accounts Receivable 2,414

    Cr Interest Revenue 14 (2,400 x 7% x 30/360)

    Cr Notes Receivable 2,400

    June 2 Midnight Co. refuses to pay the note that was due to Ohlmeyer Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.’s accounts receivable.

    Dr Accounts Receivable–Midnight Co 6,222 [6,100 + (6,100 x 8% x 90/360)]

    Cr Interest Revenue 122

    Cr Notes Receivable–Midnight Co 6,100

    July 17 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.

    Dr Cash 6,286

    Cr Interest Revenue 64 (6,222 x 8% x 46/360)

    Cr Accounts Receivable–Midnight Co 6,222

    Aug. 7 Accepted an $7,450, 90-day, 10% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.

    Dr Notes Receivable–Mulan Co 7,450

    Cr Accounts Receivable–Mulan Co 7,450

    Sept. 3 Accepted a $2,100, 60-day, 10% note dated this day in granting Noah Carson a time extension on his past-due account receivable.

    Dr Notes Receivable–Noah Carson 2,100

    Cr Accounts Receivable–Noah Carson 2,100

    Nov. 2 Received payment of principal plus interest from Carson for the September 3 note.

    Dr Cash 2,135

    Cr Interest Revenue 35 (2,100 x 10% x 60/360)

    Cr Notes Receivable 2,100

    Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note.

    Dr Cash 7,636

    Cr Interest Revenue 186 (7,450 x 10% x 90/360)

    Cr Notes Receivable 7,450

    Dec. 1 Wrote off the Privet account against Allowance for Doubtful Accounts.

    Dr Allowance for Doubtful Accounts 2,414

    Cr Accounts Receivable 2,414

    P/S. Chị đoán em là người Việt Nam. 🙂

  • You lost me

Leave a Comment