required information\nmarch 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past…

required information\nmarch 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past - due account company.\nmarch 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due receivable.\napril 16 h. cheng dishonored his note.\nmay 1 wrote off the h. cheng account against the allowance for doubtful accounts.\njune 1 received the tomas payment for principal and interest on the note dated march 3.\ncomplete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. note: do not round intermediate calculations. use 360 days a year.\ncomplete this question by entering your answers in the tabs below.\nm lee note tomas company note h cheng note general journal\ncomplete the table to calculate the interest amounts.\n| | interest calculated through maturity date | interest calculated through december 31 | interest calculated from january 1 through maturity date |\n|--|--|--|--|\n| principal | $12,000 | $12,000 | $12,000 |\n| rate (%) | 8% | 8% | 8% |\n| time | 90/360 | 60/360 | 30/360 |\n| total interest | | | |

required information\nmarch 3 accepted a $12,000, 8%, 90 - day note in granting a time extension on the past - due account company.\nmarch 17 accepted a $21,000, 30 - day, 6% note in granting h. cheng a time extension on his past - due receivable.\napril 16 h. cheng dishonored his note.\nmay 1 wrote off the h. cheng account against the allowance for doubtful accounts.\njune 1 received the tomas payment for principal and interest on the note dated march 3.\ncomplete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. note: do not round intermediate calculations. use 360 days a year.\ncomplete this question by entering your answers in the tabs below.\nm lee note tomas company note h cheng note general journal\ncomplete the table to calculate the interest amounts.\n| | interest calculated through maturity date | interest calculated through december 31 | interest calculated from january 1 through maturity date |\n|--|--|--|--|\n| principal | $12,000 | $12,000 | $12,000 |\n| rate (%) | 8% | 8% | 8% |\n| time | 90/360 | 60/360 | 30/360 |\n| total interest | | | |

Answer

Explanation:

Step1: Recall simple - interest formula

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

Step2: Calculate interest through maturity date

For the Tomas Company note with $P = 12000$, $r=0.08$, and $t = \frac{90}{360}$, we have $I_1=12000\times0.08\times\frac{90}{360}=240$.

Step3: Calculate interest through December 31

The time from March 3 to December 31 is approximately 60 days (assuming a non - leap year). So, with $P = 12000$, $r = 0.08$, and $t=\frac{60}{360}$, we get $I_2=12000\times0.08\times\frac{60}{360}=160$.

Step4: Calculate interest from January 1 through maturity date

The time from January 1 to the maturity date (90 days after March 3) is 30 days. With $P = 12000$, $r = 0.08$, and $t=\frac{30}{360}$, we have $I_3=12000\times0.08\times\frac{30}{360}=80$.

Answer:

Interest calculated through maturity date Interest calculated through December 31 Interest calculated from January 1 through maturity date
Total interest $240$ $160$ $80$