Following are selected transactions for Vitalo Company.

Following are selected transactions for Vitalo Company.

Nov.		1		Accepted a $5,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.
Dec.		31		Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr.		30		White honored her note when presented for payment; February has 28 days for the current year.

Complete the table to calculate the interest amounts at December 31^st and April 30^th and use those calculated values to prepare your journal entries (assume that no reversing entries are recorded).Complete the table to calculate the interest amounts at December 31^st and April 30^th.



Use those calculated values to prepare your journal entries (assume that no reversing entries are recorded).
 

Explanation

Dec.		31		To record interest earned $5,000 × 0.08 × 60 / 360 = $67
Apr.		30		To record cash received on note plus interest earned $5,000 × 0.08 × 120 / 360 = $133

Thank you!