Following are selected transactions of Danica Company for 2016.

Following are selected transactions of Danica Company for 2016.

Dec.		13		Accepted a $16,000, 45-day, 8% note dated December 13 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 31^st and use the calculated value to prepare your journal entries.

Complete the table to calculate the interest amounts at December 31^st.

Dec.

31

To record interest earned $16,000 × 0.08 × 18 / 360 = $64

Use the calculated value to prepare your journal entries.



Thank you!