please show me how to do this ACCOUNTING exercise?
Please show me how to complete this accounting exercise.
On December 16, 2012, we accepted a $10,800, 60-day, 8% note when granting Danny Todd a time extension on his past-due account receivable. On December 31, we made an adjusting entry to record the accrued interest on the Todd note.
On February 14, 2013, we received Todd's payment of principal and interest on the note dated December 16.
On March 2, we accepted a $6,100, 8%, 90-day note, dated this day, to grant a time extension on the past-due account receivable from Midnight Co. On March 17, we accepted a $2,400, 30-day, 7% note, dated this day, to grant Ava Privet a time extension on her past-due account receivable.
On April 16, Privet dishonored her note when presented for payment. On June 2, Midnight Co. refused to pay the note that was due to Ohlmeyer Co. on May 31.
Please prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable.
On July 17, we received payment from Midnight Co. for the maturity value of its dishonored note, plus interest for 46 days beyond maturity at 8%.
On August 7, we accepted a $7,450, 90-day, 10% note, dated this day, to grant a time extension on the past-due account receivable of Mulan Co. On September 3, we accepted a $2,100, 60-day, 10% note, dated this day, to grant Noah Carson a time extension on his past-due account receivable.
On November 2, we received payment of principal plus interest from Carson for the note dated September 3. On November 5, we received payment of principal plus interest from Mulan for the note dated August 7.
On December 1, we wrote off the Privet account against the Allowance for Doubtful Accounts.
Please prepare the journal entries to record these transactions and events, rounding amounts to the nearest dollar.
2 Answers
2012
Dec.16Accepted 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
31Made 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.14Received 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.2Accepted 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
17Accepted 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.16Privet 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
June2Midnight 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
July17Received 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.7Accepted 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.3Accepted 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.2Received 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.5Received 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.1Wrote 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. 🙂
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