Required information [The following information applies to thequestions displayed below.] Following are transactions of DanicaCompany. Dec. 13 Accepted a $11,000, 45-day, 9% note in grantingMiranda Lee a time extension on her past-due account receivable. 31Prepared an adjusting entry to record the accrued interest on theLee note.
Jan. 27 Received Lee's payment for principal and interest on thenote dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note in granting a timeextension on the past-due account receivable of Tomas Company. 17Accepted a $3,000, 30-day, 8% note in granting H. Cheng a timeextension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance forDoubtful Accounts.
June 1 Received the Tomas payment for principal and interest onthe note dated March 3. Complete the table to calculate theinterest amounts and use those calculated values to prepare yourjournal entries. (Do not round intermediate calculations. Use 360days a year.)
Complete this question by entering youranswers in the tabs below.
- M Lee Note
- Tomas Co Note
- H Cheng Note
- General Journal
Complete the table to calculate the interest amounts.
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| | Total Through Maturity | Amount Accrued at December 31 | Interest Recognized January 27 | | Principal | | | | | Rate (%) | | | | | Time | | | | | Total interest | | |
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Journal entry worksheet
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Jan 27 | | | | | | | | | | | | | | |
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