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Jan. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% 3. note. Feb. Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 10. Sold merchandise on account to Dry Creek Co., $60,000. The 13. cost of merchandise sold was $54,000. Mar. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on 12. account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on 14. асcount. Received the interest due from Trina Gelhaus and a new 120-day, Apr. 9% note as a renewal of the loan of January 3. (Record both the 3. debit and the credit to the notes receivable account.) May Received from Bradford & Co. the amount due on the note of 11. March 12. Dry Creek Co. dishonored its note dated March 14. 13. Received from Dry Creek Co. the amount owed on the July dishonored note, plus interest for 60 days at 12% computed on 12. the maturity value of the note. Aug. Received from Trina Gelhaus the amount due on her note of 1. April 3. Oct. Sold merchandise on account to Halloran Co., $13,500. The cost 5. of the merchandise sold was $8,100. Received from Halloran Co. the amount of the invoice of 15. October 5.

Jan. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% 3. note. Feb. Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 10. Sold merchandise on account to Dry Creek Co., $60,000. The 13. cost of merchandise sold was $54,000. Mar. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on 12. account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on 14. асcount. Received the interest due from Trina Gelhaus and a new 120-day, Apr. 9% note as a renewal of the loan of January 3. (Record both the 3. debit and the credit to the notes receivable account.) May Received from Bradford & Co. the amount due on the note of 11. March 12. Dry Creek Co. dishonored its note dated March 14. 13. Received from Dry Creek Co. the amount owed on the July dishonored note, plus interest for 60 days at 12% computed on 12. the maturity value of the note. Aug. Received from Trina Gelhaus the amount due on her note of 1. April 3. Oct. Sold merchandise on account to Halloran Co., $13,500. The cost 5. of the merchandise sold was $8,100. Received from Halloran Co. the amount of the invoice of 15. October 5.

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5.6EX
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Question

Sales and notes receivable transactions
The following were selected from among the transactions completed by
Caldemeyer Co. during the current year. Caldemeyer Co. sells and
installs home and business security systems. (attached)

 

Instructions
Journalize the entries to record the transactions.

Jan. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% 3. note. Feb. Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 10. Sold merchandise on account to Dry Creek Co., $60,000. The 13. cost of merchandise sold was $54,000. Mar. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on 12. account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on 14. асcount. Received the interest due from Trina Gelhaus and a new 120-day, Apr. 9% note as a renewal of the loan of January 3. (Record both the 3. debit and the credit to the notes receivable account.) May Received from Bradford & Co. the amount due on the note of 11. March 12. Dry Creek Co. dishonored its note dated March 14. 13. Received from Dry Creek Co. the amount owed on the July dishonored note, plus interest for 60 days at 12% computed on 12. the maturity value of the note. Aug. Received from Trina Gelhaus the amount due on her note of 1. April 3. Oct. Sold merchandise on account to Halloran Co., $13,500. The cost 5. of the merchandise sold was $8,100. Received from Halloran Co. the amount of the invoice of 15. October 5.
Transcribed Image Text:Jan. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% 3. note. Feb. Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 10. Sold merchandise on account to Dry Creek Co., $60,000. The 13. cost of merchandise sold was $54,000. Mar. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on 12. account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on 14. асcount. Received the interest due from Trina Gelhaus and a new 120-day, Apr. 9% note as a renewal of the loan of January 3. (Record both the 3. debit and the credit to the notes receivable account.) May Received from Bradford & Co. the amount due on the note of 11. March 12. Dry Creek Co. dishonored its note dated March 14. 13. Received from Dry Creek Co. the amount owed on the July dishonored note, plus interest for 60 days at 12% computed on 12. the maturity value of the note. Aug. Received from Trina Gelhaus the amount due on her note of 1. April 3. Oct. Sold merchandise on account to Halloran Co., $13,500. The cost 5. of the merchandise sold was $8,100. Received from Halloran Co. the amount of the invoice of 15. October 5.
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