70.2K

Verified Solution

Link Copied!

I need help with the General Ledger & the Calculation of Interest! Thank You!

GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Sanchez Company. Year 1 Dec. 16 Accepted a $16,800, 60-day, 12% note in granting Carolyn Collins a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Collins note. Year 2 Feb. 14 Received Collins's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $8,800, 6%, 90-day note in granting a time extension on the past-due account receivable from Perry Co. 17 Accepted a $12,600, 30-day, 8% note in granting Jim Ohlm a time extension on her past-due account receivable. Apr. 16 Ohlm dishonored her note. May 31 Perry Co. dishonored its note. Aug 7 Accepted a $12,000, 90-day, 8% note in granting a time extension on the past-due account receivable of Gonzalez Co. Sep. 3 Accepted a $6,600, 60-day, 10% note in granting Greg Taylor a time extension on his past due account receivable. Nov. 2 Received payment of principal plus interest from Taylor for the September 3 note. Nov. 5 Received payment of principal plus interest from Gonzalez for the August 7 note. Dec. 1 Wrote off the Ohlm account against the Allowance for Doubtful Accounts. Requirement Georral Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Sanchez Co. Calculation of interest tab - Use the interest formula (P x RXT) to verify the amount of Interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer