Following are selected transactions Danica Company for 2014: Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
Dec. 31 Prepared an adjusting entry to record the accrued interest on the Lee note.
a. Complete the table below to calculate the interest amounts at December 31st (Do not round your intermediate calculations. Use 360 days a year)
b. Use the calculate value to prepare your journal entries, recording acceptance of the note on December 13.