Summary ACCT 211 Connect Homework Chapter 6 Exercises Liberty University answers complete solutions (latest 2022/2023) Just put your values given in Excel and automatically provide answers for you! Question 1 Waupaca Company establishes a $330 petty cash fun

ACCT 211 Connect Homework Chapter 6 Exercises Liberty University answers complete solutions (latest 2022/2023) Just put your values given in Excel and automatically provide answers for you! Question 1 Waupaca Company establishes a $330 petty cash fund on September 9. On September 30, the fund shows $75 in cash along with receipts for the following expenditures: transportation costs of merchandise purchased, $57; postage expenses, $76; and miscellaneous expenses, $117. The petty cashier could not account for a $5 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $390. Question 2 Palmona Co. establishes a $240 petty cash fund on January 1. On January 8, the fund shows $135 in cash along with receipts for the following expenditures: postage, $46; transportation-in, $11; delivery expenses, $13; and miscellaneous expenses, $35. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $290 on January 8, assuming no entry in part 2. (Hint: Make two separate entries for part 3.) Question 3 Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows an $12,187 debit balance. Del Gato Clinic’s June 30 bank statement shows $11,235 on deposit in the bank. Prepare a bank reconciliation for Del Gato Clinic using the above information: Question 4 Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2017, its Cash account shows a $28,900 debit balance. The company’s May 31 bank statement shows $27,200 on deposit in the bank. Prepare a bank reconciliation for the company using the above information. Question 5 Barga Co. reported net sales for 2016 and 2017 of $668,000 and $746,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2016, $65,000; and December 31, 2017, $95,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. ACCT 211 Connect Homework Chapter 6 Problems Liberty University answers complete solutions Just put your values given in Excel and automatically provide answers for you! Question 1 Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). 1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.) Question 2 Nakashima Gallery had the following petty cash transactions in February of the current year. 1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense. Sort the payments into the appropriate categories and total the expenditures in each category. 3. Prepare the journal entries for required 2 to both (a) reimburse and (b) increase the fund amount. Question 3 The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. 1. Prepare the bank reconciliation for this company as of July 31, 2017. Question 4 2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Question 5 Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,078 and No. 5893 for $513. The following information is available for its September 30, 2017, reconciliation. Additional Information Check No. 5904 is correctly drawn for $2,118 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,075. The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company. The credit memorandum is from the collection of a $1,610 note for Chavez Company by the bank. The bank deducted a $20 collection fee. The collection and fee are not yet recorded. 1. Prepare the September 30, 2017, bank reconciliation for this company. Question 6 2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: 1. Prepare the September 30, 2015, bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30, 2015 Bank statement balance $18,254 Book balance $17,141 Add: Add: Deposit of Sept. 30 $1,677 Interest earned $17 Proceeds of note less $22 fee 1,598 1,677 1,615 19,931 18,756 Deduct: Deduct: Check No. 5893 500 NSF check 678 Check No. 5906 961 Error (check 5904) 45 Check No. 5908 437 1,898 723 Adjusted bank balance $18,033 Adjusted book balance $18,033 Explanation: No further explanation details are available for this problem. 8. Award: 0 out of 2.50 points Show my answer 2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Date General Journal Debit Credit Sept 30 No journal entry required Sept 30 Cash 17 Interest earned 17 Sept 30 Cash 1,598 Collection expense 22 Notes receivable 1,620 Sept 30 No journal entry required Sept 30 Accounts receivable—S.Nilson 678 Cash 678 Sept 30 Computer equipment 45 Cash 45   [The following information applies to the questions displayed below.] Vail Company recorded the following selected transactions during November 2015. Date General Journal Debit Credit Nov. 5 Accounts Receivable—Ski Shop 4,155 Sales 4,155 10 Accounts Receivable—Welcome Enterprises 1,729 Sales 1,729 13 Accounts Receivable—Zia Natara 1,014 Sales 1,014 21 Sales Returns and Allowances 262 Accounts Receivable—Zia Natara 262 30 Accounts Receivable—Ski Shop 3,605 Sales 3,605 ________________________________________ 1. Award: 0 out of 1.42 points Show my answer 1. Prepare a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post these entries to both the general ledger and the accounts receivable ledger. General Ledger Accounts Receivable Nov. 5 4,155 262 Nov. 21 Nov. 10 1,729 Nov. 13 1,014 Nov. 30 3,605 End.Bal 10,241 Sales Returns and Allowances Nov. 21 262 End.Bal 262 rev: 09_ Welcome Enterprises Nov. 10 1,729 End.Bal 1,729 25_2015_QC_CS-25591 Sales 4,155 Nov. 5 1,729 Nov. 10 1,014 Nov. 13 3,605 Nov. 30 End.Bal 10,503 Accounts Receivable Subsidiary Ledger Ski Shop Nov. 5 4,155 Nov. 30 3,605 End.Bal 7,760 Zia Natara Nov. 13 1,014 262 Nov. 21 End.Bal 752 Explanation: No further explanation details are available for this problem. 2. Award: 0 out of 1.42 points Show my answer 2. Prepare a schedule of accounts receivable. VAIL COMPANY Schedule of Accounts Receivable November 30, 2015 Ski Shop $7,760 Welcome Enterprises 1,729 Zia Natara 752 Total $10,241 Explanation: No further explanation details are available for this problem. 3. Award: 0 out of 1.42 points Show my answer Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, Levine receives an immediate credit to its account when it deposits sales receipts. Suntrust assesses a 4% service charge for credit card sales. The second credit card that Levine accepts is the Continental Card. Levine sends its accumulated receipts to Continental on a weekly basis and is paid by Continental about a week later. Continental assesses a 2.5% charge on sales for using its card. Apr. 8 Sold merchandise for $5,300 (that had cost $3,917) and accepted the customer's Suntrust Bank Card. The Suntrust receipts are immediately deposited in Levine's bank account. 12 Sold merchandise for $8,650 (that had cost $5,605) and accepted the customer's Continental Card. Transferred $8,650 of credit card receipts to Continental, requesting payment. 20 Received Continental's check for the April 12 billing, less the service charge. Prepare journal entries to record the above selected credit card transactions of Levine Company. rev: 04_06_2015_QC_CS-12894, 08_24_2015_QC_CS-21263, 09_10_2015_QC_CS-23737 Date General Journal Debit Credit Apr 08 Cash 5,088 Credit card expense 212 Sales 5,300 Apr 08 Cost of goods sold 3,917 Merchandise inventory 3,917 Apr 12 Accounts receivable—Continental 8,434 Credit card expense 216 Sales 8,650 Apr 12 Cost of goods sold 5,605 Merchandise inventory 5,605 Apr 20 Cash 8,434 Accounts receivable—Continental 8,434 Explanation: Apr 8 Credit card expense = $5,300 × 0.04 = $212 4. Award: 0 out of 1.42 points Show my answer Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $8,100 of its accounts receivable from its customer Lester Company. 29 Lester Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter. Date General Journal Debit Credit March 11 Bad debts expense 8,100 Accounts receivable—Lester Co. 8,100 March 29 Accounts receivable—Lester Co. 8,100 Bad debts expense 8,100 March 29 Cash 8,100 Accounts receivable—Lester Co. 8,100 Explanation: No further explanation details are available for this problem. 5. Award: 0 out of 1.42 points Show my answer At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $720,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $360 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. Explanation: Dec 31 To record estimated bad debts expense (0.007 × $720,000) = $5,040 Date General Journal Debit Credit Dec 31 Bad debts expense 5,040 Allowance for doubtful accounts 5,040 Feb 01 Allowance for doubtful accounts 360 Accounts receivable—P. Park 360 Jun 05 Accounts receivable—P. Park 360 Allowance for doubtful accounts 360 Jun 05 Cash 360 Accounts receivable—P. Park 360 6. Award: 0 out of 1.42 points Show my answer At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2015, it has outstanding accounts receivable of $93,000, and it estimates that 4% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2015 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,581 credit balance before the adjustment. (b) a $465 debit balance before the adjustment. Explanation: (a) Unadjusted balance $ 1,581 credit Estimated balance ($93,000 × 0.04) 3,720 credit ________________________________________ ________________________________________ Required adjustment $ 2,139 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ (b) Unadjusted balance $ 465 debit Estimated balance ($93,000 × 0.04) 3,720 credit ________________________________________ ________________________________________ Required adjustment $ 4,185 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Transaction General Journal Debit Credit (a) Bad debts expense 2,139 Allowance for doubtful accounts 2,139 (b) Bad debts expense 4,185 Allowance for doubtful accounts 4,185 Show my answer BC Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due ________________________________________ Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2 % 3 % 6 % 8 % 11 % ________________________________________ a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible (%) Not due: $397,000 x 2 % = $7,940 1 to 30: 91,000 x 3 % = 2,730 31 to 60: 37,000 x 6 % = 2,220 61 to 90: 19,000 x 8 % = 1,520 Over 90: 31,000 x 11 % = 3,410 Estimated balance of allowance for uncollectibles $17,820 credit b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit and $200 debit. rev: 09_28_2015_QC_CS-26592 Explanation: b. Unadjusted balance $ 3,700 credit Estimated balance 17,820 credit ________________________________________ ________________________________________ Required adjustment $ 14,120 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Unadjusted balance $ 200 debit Estimated balance 17,820 credit ________________________________________ ________________________________________ Required adjustment $ 18,020 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Date General Journal Debit Credit Dec 31 Bad debts expense 14,120 Allowance for doubtful accounts 14,120 Dec 31 Bad debts expense 18,020 Allowance for doubtful accounts 18,020   1. Award: 0 out of 2.50 points Show my answer Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 6.5% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 5.5% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.) June 4 Sold $500 of merchandise (that had cost $250) on credit to Natara Morris. 5 Sold $6,100 of merchandise (that had cost $3,050) to customers who used their Zisa cards. 6 Sold $6,044 of merchandise (that had cost $3,022) to customers who used their Access cards. 8 Sold $4,710 of merchandise (that had cost $2,355) to customers who used their Access cards. 10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $432 balance in McKee’s account stemmed from a credit sale in October of last year. 17 Received the amount due from Access. 18 Received Morris’s check in full payment for the purchase of June 4. Required: Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system.) (Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) rev: 10_14_2015_QC_CS-28506 Explanation: June 5 To record credit card sales less fee. ($6,100 × 0.065) = $397 6 To record credit card sales less fee. ($6,044 × 0.055) = $332 8 To record credit card sales less fee. ($4,710 × 0.055) = $259 18 To record cash received less discount. ($500 × 0.02) = $10 Date General Journal Debit Credit June 04 Accounts receivable—N. Morris 500 Sales 500 June 04 Cost of goods sold 250 Merchandise inventory 250 June 05 Cash /-15,703 Credit card expense /-1397 Sales 6,100 June 05 Cost of goods sold 3,050 Merchandise inventory 3,050 June 06 Accounts receivable—Access /-15,712 Credit card expense /-1332 Sales 6,044 June 06 Cost of goods sold 3,022 Merchandise inventory 3,022 June 08 Accounts receivable—Access /-14,451 Credit card expense /-1259 Sales 4,710 June 08 Cost of goods sold 2,355 Merchandise inventory 2,355 June 10 No journal entry required June 13 Allowance for doubtful accounts 432 Accounts receivable—A. McKee 432 June 17 Cash /-210,163 Accounts receivable—Access /-210,163 June 18 Cash /-1490 Sales discounts /-110 Accounts receivable—N. Morris 500 At December 31, 2015, Hawke Company reports the following results for its calendar year. Cash sales $ 1,908,240 Credit sales 3,547,000 ________________________________________ In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,074,741 debit Allowance for doubtful accounts 18,160 debit ________________________________________ 2. Award: 0 out of 2.50 points Show my answer Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2015). (Round your final answers to the nearest whole dollar.) Explanation: Dec 31, 2015 a. Expense is 2% of credit sales: To record estimated bad debts [$3,547,000 × 0.02] = $70,940 b. Expense is 1% of total sales: To record estimated bad debts [($1,908,240 $3,547,000) × 0.01] = $54,552 c. Allowance is 5% of accounts receivable: Transaction General Journal Debit Credit a. Bad debts expense 70,940 Allowance for doubtful accounts 70,940 b. Bad debts expense 54,552 Allowance for doubtful accounts 54,552 c. Bad debts expense 71,897 Allowance for doubtful accounts 71,897 Unadjusted balance $ 18,160 debit Estimated balance ($1,074,741 × 5%) 53,737 credit ________________________________________ ________________________________________ Required adjustment $ 71,897 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ 3. Award: 0 out of 2.50 points Show my answer 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part 1a. Explanation: Dec 31 a. Expense is 2% of credit sales: To record estimated bad debts [$3,547,000 × 0.02] = $70,940 Adjustment to the allowance $ 70,940 Credit Unadjusted allowance balance 18,160 Debit ________________________________________ ________________________________________ Adjusted balance $ 52,780 Credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Current assets: Accounts receivable $1,074,741 Less: Allowance for doubtful accounts (52,780) $1,021,961 4. Award: 0 out of 2.50 points Show my answer 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part 1c. (Round your intermediate and final answers to the nearest whole dollar.) Explanation: Allowance for doubtful accounts = ($1,074,741 × 5%) = $53,737 Current assets: Accounts receivable $1,074,741 Less: Allowance for doubtful accounts (53,737) $1,021,004 [The following information applies to the questions displayed below.] Jarden Company has credit sales of $3.00 million for year 2015. On December 31, 2015, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $17,264. Jarden prepares a schedule of its December 31, 2015, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2015 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 600,000 Not yet due 0.75 % 240,000 1 to 30 days past due 1.50 48,000 31 to 60 days past due 6.00 24,000 61 to 90 days past due 30.25 4,800 Over 90 days past due 63.00 ________________________________________ rev: 05_14_2015_QC_30626 5. Award: 0 out of 2.50 points Show my answer Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2015, using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible (#.##%) Estimated Uncollectible Not due: $600,000 x 0.75 % = $4,500 1 to 30: 240,000 x 1.50 % = 3,600 31 to 60: 48,000 x 6.00 % = 2,880 61 to 90: 24,000 x 30.25 % = 7,260 Over 90: 4,800 x 63.00 % = 3,024 Estimated balance of allowance for uncollectibles $21,264 credit rev: 05_14_2013_QC_30626, 09_29_2015_QC_CS-26755 Explanation: No further explanation details are available for this problem. 6. Award: 0 out of 2.50 points Show my answer 2. Prepare the adjusting entry to record bad debts expense at December 31, 2015. (Round your intermediate and final answers to the nearest whole dollar.) Explanation: Unadjusted balance $ 17,264 credit Estimated balance 21,264 credit ________________________________________ ________________________________________ Required adjustment $ 4,000 credit ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Date General Journal Debit Credit Dec 31 Bad debts expense /-54,000 Allowance for doubtful accounts /- 7. Award: 0 out of 2.50 points Show my answer Liang Company began operations on January 1, 2014. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2014 a. Sold $1,345,100 of merchandise (that had cost $980,900) on credit, terms n/30. b. Wrote off $18,800 of uncollectible accounts receivable. c. Received $672,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable will be uncollectible. 2015 e. Sold $1,538,800 of merchandise (that had cost $1,347,900) on credit, terms n/30. f. Wrote off $28,300 of uncollectible accounts receivable. g. Received $1,123,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Liang’s 2014 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar amount.) Explanation: 2014 Beginning receivables $ 0 Credit sales 1,345,100 Collections (672,300) Write-offs (18,800) ________________________________________ ________________________________________ Ending receivables 654,000 Percent uncollectible × 1.60% ________________________________________ ________________________________________ Required ending allowance 10,464** Cr. Unadjusted balance 18,800 Dr. ________________________________________ ________________________________________ Adjustment to the allowance $ 29,264 Cr. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Transaction General Journal Debit Credit a(1) Accounts receivable 1,345,100 Sales 1,345,100 a(2) Cost of good sold 980,900 Merchandise inventory 980,900 b. Allowance for doubtful accounts 18,800 Accounts receivable 18,800 c. Cash 672,300 Accounts receivable 672,300 d. Bad debts expense /-129,264 Allowance for doubtful accounts /-129,264 Prepare journal entries to record Liang’s 2015 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar amount.) **rounded to nearest dollar 2015 Beginning receivables $ 654,000 Credit sales 1,538,800 Collections (1,123,400) Write-offs (28,300) ________________________________________ ________________________________________ Ending receivables 1,041,100 Percent uncollectible × 1.60% ________________________________________ ________________________________________ Required ending allowance 16,658** Cr. Unadjusted balance Beginning (Cr.) $ 10,464 Write-offs (Dr.) 28,300 17,836 Dr. ________________________________________ ________________________________________ ________________________________________ ________________________________________ Adjustment to the allowance $ 34,494 Cr. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Transaction General Journal Debit Credit e(1) Accounts receivable 1,538,800 Sales 1,538,800 e(2) Cost of good sold 1,347,900 Merchandise inventory 1,347,900 f. Allowance for doubtful accounts 28,300 Accounts receivable 28,300 g. Cash 1,123,400 Accounts receivable 1,123,400 h. Bad debts expense /-234,494 Allowance for doubtful accounts /-234,494 8. Award: 0 out of 2.50 points Show my answer The following selected transactions are from Ohlm Company: (Do not round intermediate calculations and round your final answers to nearest whole number. Use 360 days a year.) 2014 Dec. 16 Accepted a $13,500, 60-day, 9% 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. 2015 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $7,200, 9%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,000, 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. May 31 Midnight Co. refuses to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. July 16 Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 9%. Aug. 7 Accepted a(n) $7,900, 90-day, 9% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. Sept. 3 Accepted a(n) $2,500, 60-day, 9% 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. Required: 1-a. First, complete the table below to calculate the interest amount at December 31. D.Todd Note - December 16, 2014 Total Through Maturity Interest Recognized December 31 Principal $13,500 $13,500 Rate (%) 9 % 9 % Time 60/360 15/360 Total interest /-1$203 /-1$51 1-b. Use the calculated value to prepare your journal entries for 2014 transactions. Date General Journal Debit Credit Dec 16 Notes receivable—D. Todd 13,500 Accounts receivable—D. Todd 13,500 Dec 31 Interest receivable /-151 Interest revenue /-151 1-c. First, complete the table below to calculate the interest amounts. Total Through Maturity Midnight Co. Note - March 2, 2015 A. Privet Note - March 17, 2015 Mulan Note - August 7, 2015 Midnight Co. Note - May 31, 2015 N. Carson Note - September 3, 2015 Principal $7,200 $3,000 $7,900 $7,362 $2,500 Rate (%) 9 % 7 % 9 % 9 % 9 % Time 90/360 30/360 90/360 46/360 60/360 Total interest $162 $18 $178 $85 $38 1-d. Use those calculated values to prepare your journal entries for 2015 transactions. Date General Journal Debit Credit Feb 14 Cash /-113,703 Interest revenue /-1152 Interest receivable /-151 Notes receivable—D. Todd 13,500 Mar 02 Notes receivable—Midnight Co 7,200 Accounts receivable—Midnight Co 7,200 Mar 17 Notes receivable—A. Privet 3,000 Accounts receivable—A. Privet 3,000 Apr 16 Accounts receivable—A. Privet /-13,018 Interest revenue /-118 Notes receivable—A. Privet 3,000 May 31 Accounts receivable—Midnight Co /-17,362 Interest revenue /-1162 Notes receivable—Midnight Co 7,200 Jul 16 Cash /-17,447 Interest revenue /-185 Accounts receivable—Midnight Co /-17,362 Aug 07 Notes receivable—Mulan 7,900 Accounts receivable—Mulan 7,900 Sep 03 Notes receivable—N. Carson 2,500 Accounts receivable—N. Carson 2,500 Nov 02 Cash /-12,538 Interest revenue /-138 Notes receivable—N. Carson 2,500 Nov 05 Cash /-18,078 Interest revenue /-1178 Notes receivable—Mulan 7,900 Dec 01 Allowance for doubtful accounts /-13,018 Accounts receivable—A. Privet /-13,018 Explanation: 2014 Dec. 31 To record interest earned [$13,500 × 0.09 × 15/360] = $51 2015 Apr. 16 To record receivable for dishonored note plus interest [$3,000 × 0.07 × 30/360] = $18 May 31 To record receivable for dishonored note [$7,200 ($7,200 × 0.09 × 90/360)] = $7,200 $162 = $7,362* *Rounded to the nearest dollar July 16 To record cash received on account plus additional interest [$7,362 × 0.09 × 46/360 = $85 (rounded)]. Nov. 2 To record cash received on note plus interest ($2,500 × 0.09 × 60/360 = $38 rounded). Nov. 5 To record cash received on note plus interest ($7,900 × 0.09 × 90/360 = $178).