Question

Exercise 7-11 Notes receivable transactions LO C2 Following are selected transactions of Danica Company for 2016 Ints Suped Dec. 1) Accepted a $20,000, 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. eBook Complete the table to calculate the interest amounts at December 31st and use the calculated value to prepare your journal entries. (Do not round your intermediate calculations. Use 360 days a year.) ferences Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at December 31 Total Through Maturity interest Recognized December 31 Principal Rate(%) Time Total interest General Journal >

Answer 1

M.Lee Note
	total	Amount	interest
	through	accrued at	Recognized
	Maturity	31-Dec	27-Jan
Principal	20,000	20,000	20,000
Rate(%)	7%	7%	7%
time	45/360	18/360	27/360
total intt	175	70	105

Journal Entries
Date	General Journal				Debit	Credit
2016
13-Dec	Note receivable				20,000
	Accounts receivable					20,000
31-Dec	interest receivable				70
	interest income					70