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The following transactions are from Ohlm Company.

Note: Use $360$ days a year.

Year $1$

December $16$ Accepted a$($n$)$ $$10,300,60-$day, $9\%$ note in granting Danny Todd a time extension on his past$-$due account

receivable.

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

Year $2$

February $14$ Received Todd's payment of principal and interest on the note dated December $16.$

March $2$ Accepted $a(n)$$$6,000,9\%,90-$day note in granting a time extension on the past$-$due account receivable from

Midnight Company.

March $17$ Accepted a $$2,400,30-$ day, $78$ note in granting Ava Privet a time extension on her past$-$due account

receivable.

April $16$ Privet dishonored her note.

May $31$ Midnight Company dishonored its note.

August $7$ Accepted $a(n)$$$8,650,90-$day, $11\%$ note in granting a time extension on the past$-$due account receivable of

Mulan Company.

September $3$ Accepted a $$3,670,60-$day, $8\%$ note in granting Noah Carson a time extension on his past$-$due account

receivable.

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

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

December $1$ 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.

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?

Complete this question by entering your answers in the tabs below.

Use those calculated values to prepare your journal entries for Year $2$ transactions.

Journal entry worksheet

Received Todd's payment of principal and interest on the note dated December

Note: Enter debits before credits.

Answer & Explanation Solved by verified expert

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