required information
march 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past - due account company.
march 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due 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 company.
march 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due 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 simple - 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 through maturity date
For the Tomas Company note with $P = 12000$, $r=0.08$, and $t = \frac{90}{360}$, we have $I_1=12000	imes0.08	imes\frac{90}{360}=240$.
## Step3: Calculate interest through December 31
The time from March 3 to December 31 is approximately 60 days (assuming a non - leap year). So, with $P = 12000$, $r = 0.08$, and $t=\frac{60}{360}$, we get $I_2=12000	imes0.08	imes\frac{60}{360}=160$.
## Step4: Calculate interest from January 1 through maturity date
The time from January 1 to the maturity date (90 days after March 3) is 30 days. With $P = 12000$, $r = 0.08$, and $t=\frac{30}{360}$, we have $I_3=12000	imes0.08	imes\frac{30}{360}=80$.

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

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Step1: Recall simple - interest formula

Step2: Calculate interest through maturity date

Step3: Calculate interest through December 31

Step4: Calculate interest from January 1 through maturity date

Answer: