Question

Required information The following information applies to the questions displayed below,.] Following are transactions of Danica Company. Dec. 13 Accepted a $18.000, 45-day, 6t note 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. 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.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amourts at December 31st Interest Total Through Recognized Maturity December 31 Principal Rate (%) Time Total interest aret A General Journal

Answer 1

	Total through maturity	Interest recognized December 31
Principal	18,000	18,000
Rate (%)	6%	6%
Time	45 days	18 days
Total interest	18,000 x 6% x 45/360 = 135	18,000 x 6% x 18/360 = 54

Journal

Dec. 13	Note receivable	18,000
	Accounts receivable - Miranda Lee		18,000
Dec. 31	Interest receivable	54
	Interest revenue		54