Question

january 27 received lees payment for principal and interest on the note dated december 13. march 3 accepted a $5,000, 10%, 90 - day note in granting a time extension on the past - due account receivable of tomas company. march 17 accepted a $2,000, 30 - day, 9% 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 your 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. note: round \total interest\ answers to nearest whole dollar. interest calculated through maturity date interest calculated through december 31 interest calculated from january 1 through maturity date principal rate (%) time total interest

Explanation:

Step1: Recall interest formula

The simple - interest formula is $I = P\times r\times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Calculate interest for M. Lee Note

No details about M. Lee note's principal, rate, and time are given in the problem description for a full - fledged calculation. But if we assume we have all the values, we would convert the time to a fraction of a year (e.g., if the note is for $n$ days, $t=\frac{n}{360}$) and then use the formula $I = P\times r\times t$.

Step3: Calculate interest for Tomas Company Note

Principal $P = 5000$, rate $r=0.10$, time $t=\frac{90}{360}$ (90 - day note).
$I = 5000\times0.10\times\frac{90}{360}=\frac{5000\times0.10\times90}{360}=\frac{45000}{360}=125$
Interest calculated through December 31: First, find the number of days from March 3 to December 31. March has 31 - 3=28 days, April 30 days, May 31 days, June 30 days, July 31 days, August 31 days, September 30 days, October 31 days, November 30 days, December 31 days. Total days $d = 28+30 + 31+30+31+31+30+31+30+31 = 303$ days. $t=\frac{303}{360}$, $I = 5000\times0.10\times\frac{303}{360}=\frac{5000\times0.10\times303}{360}\approx420.83$
Interest calculated from January 1 through maturity date: Since the note is 90 - day from March 3, the number of days from January 1 to March 3 is 31 (January)+28 (February)+3 (March)=62 days. The number of days from March 3 to maturity is 90 days. So the number of days from January 1 to maturity is 90+(31 + 28+3 - 1)=151 days. $t=\frac{151}{360}$, $I = 5000\times0.10\times\frac{151}{360}=\frac{5000\times0.10\times151}{360}\approx209.72$

Step4: Calculate interest for H. Cheng Note

Principal $P = 2000$, rate $r = 0.09$, time $t=\frac{30}{360}$ (30 - day note).
$I=2000\times0.09\times\frac{30}{360}=\frac{2000\times0.09\times30}{360}=15$
Interest calculated through December 31: First, find the number of days from March 17 to December 31. March has 31 - 17 = 14 days, April 30 days, May 31 days, June 30 days, July 31 days, August 31 days, September 30 days, October 31 days, November 30 days, December 31 days. Total days $d=14 + 30+31+30+31+31+30+31+30+31 = 289$ days. $t=\frac{289}{360}$, $I = 2000\times0.09\times\frac{289}{360}=\frac{2000\times0.09\times289}{360}\approx144.5$
Interest calculated from January 1 through maturity date: Since the note is 30 - day from March 17, the number of days from January 1 to March 17 is 31 (January)+28 (February)+17 (March)=76 days. The number of days from March 17 to maturity is 30 days. So the number of days from January 1 to maturity is 30+(31 + 28+17 - 1)=105 days. $t=\frac{105}{360}$, $I = 2000\times0.09\times\frac{105}{360}=\frac{2000\times0.09\times105}{360}=52.5$

Answer:

	Interest calculated through maturity date	Interest calculated through December 31	Interest calculated from January 1 through maturity date
Tomas Company Note	125	421 (rounded)	210 (rounded)
H. Cheng Note	15	145 (rounded)	53 (rounded)