Following are selected transactions for Vitalo Company. Accepted a $16,000, 180-day, 7% note dated November 1 from Kelly White

Following are selected transactions for Vitalo Company.

Nov.	1	Accepted a $16,000, 180-day, 7% 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 honors her note when presented for payment; February has 28 days for the current year.

  

First, complete the table below to calculate the interest amounts at December 31st and April 30th. (Round your final answers to nearest whole dollar. Use 360 days a year.)

Use those calculated values to prepare your journal entries (assume that no reversing entries are recorded).   Explanation: Dec 31    To record interest earned $16,000 × 0.07 × 60 / 360 = $187 Apr 30    To record cash received on note plus interest earned $16,000 × 0.07 × 120 / 360 = $373