GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from...

GL0701 - Based on Problem 7-5A LO C2, C3, P4

The following selected transactions are from Hall Company.

Year 1

Dec.		16			Accepted a $13,200, 60-day, 12% note in granting Wang Lee a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Lee note.

Year 2

Feb.	14	Received Lee’s payment of principal and interest on the note dated December 16.
Mar.	2	Accepted a $10,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Collins Co.
	17	Accepted a $10,800, 30-day, 7% note in granting Kathy Perry a time extension on her past-due account receivable.
Apr.	16	Perry dishonored her note.
May	31	Collins Co. dishonored its note.
Aug.	7	Accepted a $20,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Brown Co.
Sep.	3	Accepted a $3,000, 60-day, 10% note in granting Hao Lee a time extension on his past-due account receivable.
Nov.	2	Received payment of principal plus interest from Lee for the September 3 note.
Nov.	5	Received payment of principal plus interest from Brown for the August 7 note.
Dec.	1	Wrote off the Perry account against the Allowance for Doubtful Accounts.

1.Feb. 14 Received Lee's payment of principal and interest on the $13,200, 60-day, 12% note dated December 16. The Hall Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.

2.Mar. 2 Accepted an $10,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Collins Co.

3.Mar. 17 Accepted a $10,800, 30-day, 7% note in granting Kathy Perry a time extension on her past-due account receivable.

4.Apr. 16 Perry dishonored her note.

5.May 31 Collins Co. dishonored its note.

6.Aug. 7 Accepted a(n) $20,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Brown Co.

7. Sept. 3 Accepted a $3,000, 60-day, 10% note in granting Hao Lee a time extension on his past-due account receivable.

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

9.Nov. 5 Received payment of principal plus interest from Brown for the August 7 note.

10. Dec. 1 Wrote off the Perry account against Allowance for Doubtful Accounts. No additional interest was accrued.

Hall Co.
Calculation of interest revenue
February 14 - Lee note:
Principal
Interest rate
Number of days' interest to be recorded in Year 2




Number of days' interest to be recorded in Year 2


Principal
Interest rate
Number of days' interest to be recorded in Year 2




Number of days' interest to be recorded in Year 2




Number of days' interest to be recorded in Year 2


Total interest revenue - Year 2	$0

Solutions

Expert Solution

Date	General journal				Debit	Credit
Year 1
Dec 16.	Note receivable-Wang Lee				13200
	Accounts receivable-Wang Lee					13200
	(Notes received from customers)
Dec 31.	Interest receivable		(1320012%15/360)		66
	Interest revenue					66
	(Interest accrued)
Year 2
Feb 14.	Cash		(13200+66+198)		13464
	Note receivable-Wang Lee					13200
	Interest receivable		(1320012%15/360)			66
	Interest revenue		(1320012%45/360)			198
	(Payment on note received )
Mar 2.	Note receivable-Collins Co.				10000
	Accounts receivable-Collins Co.					10000
	(Notes received from customers)
Mar 17.	Note receivable-Kathy perry				10800
	Accounts receivable-Kathy perry					10800
	(Notes received from customers)
Apr 16.	Accounts receivable-Kathy perry			(10800+63)	10863
	Note receivable-Kathy perry					10800
	Interest revenue		(108007%30/360)			63
	(Note dishonored)
May 31.	Accounts receivable-Collins Co.		(10000+150)		10150
	Note receivable-Collins Co.					10000
	Interest revenue		(100006%90/360)			150
	(Note dishonored)
Aug 7.	Note receivable-Brown Co.				20000
	Accounts receivable-Brown Co.					20000
	(Notes received from customers)
Sep 3.	Note receivable-Hao Lee				3000
	Accounts receivable-Hao Lee					3000
	(Notes received from customers)
Nov 2.	Cash		(3000+50)		3050
	Note receivable-Hao Lee					3000
	Interest revenue		(300010%60/360)			50
	(Payment on note received )
Nov 5.	Cash		(20000+300)		20300
	Note receivable-Brown Co.					20000
	Interest revenue		(200006%90/360)			300
	(Payment on note received )
Dec 1.	Allowance for doubtful accounts				10863
	Accounts receivable-Kathy perry					10863
	(Wrote off uncollectible account)

		Calculation of interest revenue
					$
February 14-Wang Lee note:
Principal				a	13200
Interest rate				b	12%

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions...

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $12,600, 60-day, 6% 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. 2017 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar....

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions...

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16 Accepted a $10,100, 60-day, 8% 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. 2017 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar....

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are...

Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1 Dec. 16 Accepted a $14,600, 60-day, 9% note 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. Year 2 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted...

Problem 15-5A Long-term investment transactions; unrealized and realized gains and losses LO C2, P3, P4 [The...

Problem 15-5A Long-term investment transactions; unrealized and realized gains and losses LO C2, P3, P4 [The following information applies to the questions displayed below.] Stoll Co.’s long-term available-for-sale portfolio at December 31, 2016, consists of the following. Available-for-Sale Securities Cost Fair Value 65,000 shares of Company A common stock $ 1,045,600 $ 930,000 40,000 shares of Company B common stock 350,750 340,000 40,000 shares of Company C common stock 1,381,500 1,329,875 Stoll enters into the following long-term investment transactions during...

Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The...

Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 23,200 units of product to finished goods inventory. Its 3,200 units of beginning work in process consisted of $20,000 of...

Problem 20-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The...

Problem 20-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.] Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 25,800 units to the blending department. Of the...

Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The...

Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.] Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 23,000 units to the blending department. Of the...

Problem 20-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces...

Problem 20-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $98,100 as of October 1, which consists of $21,000 of direct materials and $77,100 of conversion costs....

Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 Tamar...

Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 29,200 units of product to finished goods inventory. Its 4,400 units of beginning work in process consisted of $21,200 of direct materials and $284,940 of conversion costs. It has...

Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces...

Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $95,300 as of October 1, which consists of $20,400 of direct materials and $74,900 of conversion costs....

Subjects