required information
march 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past - due account receivable of tomas company.
march 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due account receivable.
april 16 h. cheng dishonored his note.
may 1 wrote off the h. cheng account against the allowance for doubtful accounts.
june 1 received the tomas payment for principal and interest on the note dated march 3.
complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries.
note: do not round intermediate calculations. use 360 days a year.
complete this question by entering your answers in the tabs below.
m lee note tomas company note h cheng note general journal
complete the table to calculate the interest amounts.
| | interest calculated through maturity date | interest calculated through december 31 | interest calculated from january 1 through maturity date |
|--|--|--|--|
| principal | $12,000 | $12,000 | $12,000 |
| rate (%) | 8% | 8% | 8% |
| time | 90/360 | 60/360 | 30/360 |
| total interest | | | |

Question

required information
march 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past - due account receivable of tomas company.
march 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due account receivable.
april 16 h. cheng dishonored his note.
may 1 wrote off the h. cheng account against the allowance for doubtful accounts.
june 1 received the tomas payment for principal and interest on the note dated march 3.
complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries.
note: do not round intermediate calculations. use 360 days a year.
complete this question by entering your answers in the tabs below.
m lee note tomas company note h cheng note general journal
complete the table to calculate the interest amounts.
| | interest calculated through maturity date | interest calculated through december 31 | interest calculated from january 1 through maturity date |
|--|--|--|--|
| principal | $12,000 | $12,000 | $12,000 |
| rate (%) | 8% | 8% | 8% |
| time | 90/360 | 60/360 | 30/360 |
| total interest |  |  |  |

Accepted Answer

# Explanation:
## Step1: Recall interest formula
The simple - interest formula is $I = P	imes r	imes t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.
## Step2: Calculate interest for Tomas Company note through maturity date
For the Tomas Company note, $P = 12000$, $r=0.08$, and $t=\frac{90}{360}$.
$I = 12000	imes0.08	imes\frac{90}{360}=240$
## Step3: Calculate interest for Tomas Company note through December 31
The note was accepted on March 3. From March 3 to December 31, the number of days is approximately 303 days. But we are using the fraction based on the information given. Here $t = \frac{60}{360}$, $P = 12000$, $r = 0.08$.
$I=12000	imes0.08	imes\frac{60}{360}=160$
## Step4: Calculate interest for Tomas Company note from January 1 through maturity date
We assume the note's time - frame for this calculation. Here $t=\frac{30}{360}$, $P = 12000$, $r = 0.08$.
$I = 12000	imes0.08	imes\frac{30}{360}=80$

# Answer:
|  | Interest calculated through maturity date | Interest calculated through December 31 | Interest calculated from January 1 through maturity date |
|--|--|--|--|
| Total interest | $\$240$ | $\$160$ | $\$80$ |

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QUESTION IMAGE

Question

Explanation:

Step1: Recall interest formula

Step2: Calculate interest for Tomas Company note through maturity date

Step3: Calculate interest for Tomas Company note through December 31

Step4: Calculate interest for Tomas Company note from January 1 through maturity date

Answer: