Accepted a 14200 60day 8 note dated this day in granting Dan

Accepted a $14,200, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable.

Accepted an $7,400, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.

Accepted a $3,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.

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.

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

Accepted an $8,950, 90-day, 11% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.

Accepted a $3,840, 60-day, 12% note dated this day in granting Noah Carson a time extension on his past-due account receivable.

First, complete the table below to calculate the interest amount at December 31.

(Which i\'ve already done)

(Im having trouble with the above) June 2 with midnight Co. Note

Use those calculated values to prepare your journal entries for 2013 transactions.

(So what I really need help with is the note of \"midnight Co.) On June 2, 2013.

With the Journal entries for the transactions on 2013.

And also to double check for any mistakes on what I\'ve already finished.

Thanks!

Solution

2012
Dec. 16 Accepted a $14,200, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
Dr Notes Receivable--D Todd                                14,200
Cr Accounts Receivable--D Todd                               14,200

31 Made an adjusting entry to record the accrued interest on the Todd note.
Dr            Interest Receivable              47 (14,200 x 8% x 15/360)
Cr                            Interest Revenue                   47

2013
Feb. 14 Received Todd\'s payment of principal and interest on the note dated December 16.
Dr            Cash                                                                       14,389
Cr                                            Interest Receivable                                                                47
Cr                                            Interest Revenue                                                                   142 (14,200 x 8% x 45/360)
Cr                                            Notes Receivable                                                                  14,200

Mar. 2 Accepted an $7,400, 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                          7,400
Cr                                                            Accounts Receivable--Midnight Co                    7,400

March 17 Accepted a $3,400, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.

Dr                            Notes Receivable                                  3,400
Cr                                                            Accounts Receivable                                            3,400

Apr. 16 Privet dishonored her note when presented for payment.
Dr                            Accounts Receivable                            3,420
Cr                                                            Interest Revenue                                   20 (3,400 x 7% x 30/360)
Cr                                                            Notes Receivable                                  3,400

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                    7,548
Cr                                                                            Interest Revenue                                   148 (7,400 x 8% x 90/360]  
Cr                                                                            Notes Receivable--Midnight Co          7,400

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                                                       7,625
Cr                                            Interest Revenue                                                                   77 (7,548 x 8% x 46/360)
Cr                                            Accounts Receivable--Midnight Co                                    7,548

Aug. 7 Accepted an $8,950, 90-day, 11% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
Dr                            Notes Receivable--Mulan Co                              8,950
Cr                                                            Accounts Receivable--Mulan Co                         8,950

Sept. 3 Accepted a $3,840, 60-day, 12% note dated this day in granting Noah Carson a time extension on his past-due account receivable..
Dr                            Notes Receivable--Noah Carson                         3,840
Cr                                                            Accounts Receivable--Noah Carson                                   3,840

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

Dr                           Cash                                                       3,917
Cr                                            Interest Revenue                                                   77 (3,840 x 12% x 60/360)
Cr                                            Notes Receivable                                                 3,840

Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note.
Dr                            Cash                                                       9,196
Cr                                            Interest Revenue                                   246 (8,950 x 11% x 90/360)
Cr                                            Notes Receivable                                  8,950

Dec. 1 Wrote off the Privet account against Allowance for Doubtful Accounts.
Dr                            Allowance for Doubtful Accounts                                         3,420
Cr                                                                            Accounts Receivable                                            3,420