Following are selected transactions Dulcinea Company for 2012. First, complete the table below to...
Question:
Following are selected transactions Dulcinea Company for 2012.
Prepare the journal entry to record the note; prepare the adjusting entry on December 31 to record the accrued interest on the note Use a 360-day basis to accrue the interest on the note.
| Dec. | 13 | Accepted a $18,000, 45-day, 7% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. |
|---|---|---|
| 31 | Prepared an adjusting entry to record the accrued interest on the Lee note. |
Record a Note Receivable and the Related Accrued Interest.
It is not unusual in some situations for a Company, which has a trade accounts receivable balance due from a customer, to subsequently convert that trade accounts receivable balance to a note receivable. The reasons for this conversion of the trade receivable to a note receivable include the inability, for a number of reasons, for the customer to pay the balance due on the due date. Another reason is the Company can then charge interest on a note receivable balance, which is typically not done on a trade accounts receivable outstanding balance.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerDecember 13: Accepted a $18,000, 45-day, 7% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable:
Debi...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Notes Receivable: Definition, Maturity Date & Interest
from
Chapter 7 / Lesson 6
26K
Learn what loan maturity date is and how it affects your final loan payment. Find out the difference between short-term, medium-term, and long-term maturity dates.
Related to this Question
- Calculate the following: Journal, bank reconciliation, and balance sheet for the information given. Selected transactions completed by Kornett Company during its first fiscal year ended December 31,
- 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
- The following is taken from the Colaw Company balance sheet. COLAW COMPANY Balance Sheet (partial) December 31, 2019 Current liabilities Interest payable (for 12 months from January 1 to December
- 1. The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $17,000 balance owed by DeCoy Co., a b
- Selected accounts included in the property, plant, and equipment section of Flipper Corporation's balance sheet at December 31, 2014, had the following balances: During 2015, the following transactions occurred: a. On January 31 a tract of land was acquir
- The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 35% of the $9,000 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible Apr. 18 Reinstated
- The balance sheet of Heitman Management Consulting, Inc. at December 31, 2015, reported the following? stockholders' equity: During 2016?, Heitman completed the following selected? transactions: St
- Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below. The following transactions occurred during December. Dec 2 - Kenset
- At December 31, 2017, Grand Company reported the following as plant assets. During 2018, the following selected cash transactions occurred. (a) Journalize the above transactions. The company uses s
- The following transactions were completed by the Irvine Company during the current fiscal year ended December 31: 1. Record the January 1 credit balance of $26,000 in a T-account for Allowance for Dou
- A company's January 1, 2014 balance sheet reported total assets of $163,000 and total liabilities of $66,500. During January 2014, the company completed the following transactions: (A) paid a note payable using $16,500 cash (no interest was paid); (B) col
- The following were selected from among the transactions completed by Babcock Company during November of the current year: Journalize the transactions. Refer to the chart of accounts for exact wording
- The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and
- The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 30% of the $18,900 balance owed by DeCoy Co., a bankrupt busine
- The following items were taken from the records of a company as of December 31st. Prepare a balance sheet in proper format for the company as of December 31st to compute the amount of "retained earnin
- Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below. The following transactions occurred during December. Dec 2 - Kens
- At December 31, 2019, Swifty Corporation reported the following as plant assets. During 2020, the following selected cash transaction occurred. Journalize the above transactions. The company uses stra
- The following transactions were completed by Axiom Management Company during the current fiscal year ended December 31: Feb. 17 Received 25% of the $30,000 balance owed by Gillespie Co., a bankrupt business, and wrote off the remainder as uncollectible.
- Presented below is information related to Bramble company at December 31, 2017, the end of its first year of operations. Compute the following:
- Alpha Watches completed the following selected transactions during 2016 and 2017. 2016 Dec 31 Estimated that bad debts expense for the year was 1% of credit sales of $450,000 and recorded that amount as an expense. The company uses the allowance method.
- Focus Foot Company reported the following amounts in the stockholders' equity section of its December 31, 2013, balance sheet. During 2014, Focus Foot took part in the following transactions concerni
- The following transactions were completed by Irvine Company during the current fiscal year ended December 31 Feb. 8 Received 40% of the $17,000 balance owed by Decoy Co., a bankrupt business, an
- At December 31, 2015, Grand Company reported the following as plant assets. During 2016, the following selected cash transactions occurred. Journalize the above transactions. The company uses straight
- A company's January 1, 2014 balance sheet reported total assets of $162,000 and total liabilities of $66,000. During January 2014, the company completed the following transactions: (A) paid a note payable using $16,000 cash (no interest was paid); (B) c
- Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below. The following transactions occurred during December. Dec 2 - Kense
- The following selected accounts from the Pronghorn Corp's general ledger are presented below for the year ended December 31, 2017: Advertising expense $53,900 Interest revenue $29,400 Common stock
- The following selected transactions were taken from the records of Aprilla Company for the first year of its operations ending December 31, 2012: Jan. 27 Wrote off the account of C. Knoll, $6,000. Feb. 17 Received $1,000 as partial payment on the $3,000 a
- The following selected transactions were taken from the records of Aprilla Company for the first year of its operations ending December 31, 2014: Jan. 27 Wrote off account of C. Knoll, $3,350. Feb. 17 Received $1,680 as partial payment on the $4,460 accou
- Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2014, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. January 3
- The following transactions were computed by The Irvine Company during the current fiscal year ended December 31: Feb.8. Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and
- The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Required: 1.Record the January 1 credit balance of $25,685 in a T account for Allowan
- The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb 8 Received 40% of the $18,000 balance owned by DeCoy Co., a bankrupt business, an
- Kenseth Corporation's unadjusted trial balance at December 1, 2014, is presented below. The following transactions occurred during December. Dec 2 - Ken
- The following were selected from among the transactions completed by Southmont Company during April of the current year, Journalize the transactions: Apr. 3 purchased merchandise on account from Mande
- Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31. Journalize th
- The following were selected from among the transactions completed by Babcock Company during November of the current year: Instructions: Journalize the transactions.
- The following were selected from among the transactions completed by Wild Adventures Company during December of the current year: Dec. 3.Purchased merch
- A company's January 1, 2014 balance sheet reported total assets of $159,000 and total liabilities of $64,500. During January 2014, the company completed the following transactions: (A) paid a note pa
- Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($68,000)
- Lakeview Company completed the following two transactions. The annual accounting period ends on December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($72,00
- Lakeview Company completed the following two transactions. The annual accounting period ends on December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($48,
- Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($108,000
- Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($48,000),
- Lakeview Company completed the following two transactions. The annual accounting period ends on December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($84,0
- The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31, 2016: Apr. 13 Wrote off account of Dean Sheppard, $8,450 Ma
- Selected account balances from the December 31, 2015, trial balance of the Gracy Company are listed below: | |Debit| Credit |Inventory, January 1, 2015 |$12,500| | Purchases |25,000| | Salaries Expe
- The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Required: 1. Record the January 1 credit balance of $26,000 in a T account for Allow
- The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method.
- The general ledger of the Karlin Company, a consulting company, on January 1, 2011, contained the following account balances: The following is a summary of the transactions for the year: a. Sales of
- 1.) A company had the following comparative balance sheets at the beginning and end of the year: January 1 December 31 Assets $300 $350 Liabilities $180 $200 Shareholders' Equity ? ? Which of the fol
- Calculate the net cash flow from financing activities for 2008. The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2008, and December 31, 2008: The following information was taken from Buckeye Company's
- Tamarisk, Inc. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except on December 31. (Omit cost o
- Riverside Company completed the following two transactions. The annual accounting period ends December 31: a. On December 31, calculated the payroll, which indicates gross earnings for wages ($210,000
- Riverside Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($170,000
- The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15 Borrowed $225,000 from Audi Company, issuing a 30-day 6% not for that amo
- The following are selected transactions of Graves Company. Graves prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Ally Company, $35,175, terms 2/10, n/30. (Grav
- The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year ended December 31, 2017: Advertising expense $55,000 Interest revenue $30,000 Common s
- Selected financial statement information and additional data for A Company is presented below. Please prepare a Statement of Cash Flows for the year ending December 31, 2016. Additional Information:
- The following selected transactions were completed during January of the current year: - Billed customers for fees earned $41,730. - Purchased supplies on account, $1,800. - Received cash from cust
- Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows:
- Riverside Company completed the following two transactions. The annual accounting period ends at De 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($255,000),
- The Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2007 and 2008: 2007 Nov. 1 Issued a 120-day, 12% note, face value of $15,000, to Johnson Company to settle an open account of that amount Dec
- On December 1, 2014, Havenhill Company had the following account balances. During December, the company completed the following transactions. Dec. 7 Received $3,540 cash from customers in payment of
- During 2013, Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, 2013, calculated the payroll, which indicates gross earnings f
- The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions for year-end 2014 using the aging method. Assume that the allowa
- Elburn Supply Co. had the following transactions related to notes receivable during the last 2 months of 2014. The company does not make entries to accrue interest except at December 31. Nov. 1 Loane
- Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2014. The company does not make entries to accrue interest except at December 31. Nov. 1: Loane
- The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $18,200 of mercha
- Pharoah Company was organized on January 1. During the first year of operations, the following plant asset. Analyze the transactions using the following table column headings. Enter the amounts in the
- The following selected transactions were completed during August between Summit Company and Beartooth Co.: Journalize the August transactions for (1) Summit Company and (2) Beartooth Co.
- Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurr
- The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2016 Jan.13 Negotiated a revolving credit agreement with Parish
- Candlelight Corporation, whose fiscal year ended June 30, 2014, completed the following transactions involving notes payable: ? Obtained a 60-day extension on a $36,000 trade account payable owed to
- Wildhorse Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. (Omit cost of
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: 1. Journalize the selected transactions. If no entry is required, select "No e
- Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below) Building $1
- The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31, 2014: June 8. Wrote off the account of Kathy Quantel, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of R
- LANDWEHR CORPORATION Balance Sheets December 31 LANDWEHR CORPORATION Income Statement For the Years Ended December 31 Required: From the information provided above, compute the following: 1) P/E
- Pride parts Co. has a fiscal year ending December 31. The company completed the following selected transactions: 2013 July 2 ? Paid $640,000 plus $20,000 in legal fees (Pertaining to all assets purc
- The following transactions were selected from among those completed by Bear's Retail Store: Required: Compute the total revenue to be reported over the two months
- The following selected accounts from the Blue Door Corporation's general ledger are presented below for the year ended December 31, 2017
- Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were as follows: Jan. 3. Issued a check to establish a petty cash fund of $4,500. Feb. 26. Re
- Some Company has asked you to prepare a cash budget for the year 2020 using the following information: Proiected cash balance at January 1 50,000 Cash balance desired December 31 65,000 Projected sal
- Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. Jan. 15 Purchased and paid for the merchandise. The invoice amount was $26,500; assume
- Vigeland Company completed the following transactions during Year 1. Vigeland's fiscal year ends on December 31. Jan. 15, Purchased and paid for merchandise. The invoice amount was $14,400; assume
- On December 1, 2017, Fullerton Company had the following account balances During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of a
- Presented below are selected transactions on the books of Simonson Corporation. May 1, 2014: Bonds payable with a par value of $963,600, which are dated January 1, 2014, are sold at 106 plus accrued i
- The following balance sheet was prepared by the bookkeeper for Stripes Company as of December 31, 201X Stripes Company Balance Sheet as of December 31, 201X is as follows. Cash $ 80,000 Acc
- Some Company Cash Budget Given Information For the Year Ended December 31, 2020 Some Company has asked you to prepare a cash budget for the year 2020 using the following information: Projected cash balance at January 1 50,000 Cash balance desired December
- A company's January 1, 2014 balance sheet reported total assets of $129,000 and total liabilities of $31,000. During January 2014, the following transactions occurred: (A) the company issued stock an
- A company's January 1, 2014 balance sheet reported total assets of $121,000 and total liabilities of $39,000. During January 2014, the following transactions occurred: (A) the company issued stock and
- A company's January 1, 2014 balance sheet reported total assets of $135,000 and total liabilities of $45,000. During January 2014, the following transactions occurred: (A) the company issued stock and
- Elburn Supply Co. has the following transactions related to notes receivable during the Iast 2 months of 2017. The company does not make entries to accrue interest except at December 31. Nov. 1 Loane
- The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13 - Wrote off account of Dean Sheppard, $3,960. May
- At December 31, 2013, Ingleton Company reports the following results for the year: |Cash sales|$1,025,000 |Credit sales|1,342,000 In addition, its unadjusted trial balance includes the following it
- The following were selected from among the transactions completed by Wild Adventures Company during December of the current year: Dec. 3. Purchased merchandise on account from Miramar Co., list price $45,000, trade discount 20%, terms FOB shipping point,
- The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2018 are presented below. Kinder Company Balance Sheet Dec
- The following transactions took place for Smart Solutions Inc. 2014 a. July 1 Loaned $74,000 to an employee of the company and received back a one-year, 9 percent note. b. Dec. 31 Accrued interest on
- The following selected transactions relate to liabilities of Interstate Farm Implements for December of 2018. Interstate's fiscal year ends on December 31. Required: Prepare the appropriate journal entries for these transactions. 1. On December 15, rec
- On January 1, 2014, Tile Company completed the following transactions (use a 9 percent annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate f
Explore our homework questions and answers library
Browse
by subject