Reference no: EM132543432

Question -

Objective: To record transactions for renewed, discounted, and dishonored notes receivable Werling Company had the following transactions for its notes receivable during 2012:

2012

Mar. 30 Received a 30-day, 12%, $3,400 note on account from Sid Franklin.

Apr. 10 Received a 60-day, 10%, $19,200 note on account from Wes Phillips.

Apr. 29 Received the interest due on Sid Franklin's not of March 30 and granted a request to renew the note for 30 more days at 12%.

Apr. 30 Discounted Wes Phillip's note of April 10 at 12%.

May 5 Received a two-month, 10%, $16,000 note on account from Lon Washburn.

May 12 Received a 30-day, 10%, $1,500 note on account from Ted Ash.

May 29 Received cash from Sid Franklin for the note due today.

Jun. 5 Discounted Lon Washburn's note of May 5 at 12%.

Jun. 9 Received notice from the bank that Wes Phillips paid the note of April 10.

Jun. 11 Received the interest due on Ted Ash's note of May 12 and granted a request to renew the note for 30 more days at 10%.

Jul. 5 Received notice from the bank that Lon Washburn dishonored the note of May 5 when it was presented for payment. Paid the bank the maturity value plus a $100 protest fee.

Jun. 11 Ted Ash dishonored the note of June 11 due today.

Aug. 4 Collected the amount due from Lon Washburn, including interest at 10% for the overdue period.

Aug. 10 Received cash from Ted Ash for the amount due, including interest for the overdue period at 10%.

Directions - Use a general journal to record the transactions for Werling Company.