In: Accounting
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:
Jan. 13. | Sold merchandise on account to Black Tie Co., $40,800. The cost of goods sold was $24,480. | |
Mar. 10. | Accepted a 60-day, 6% note for $40,800 from Black Tie Co. on account. | |
May 9. | Received from Black Tie Co. the amount due on the note of March 10. | |
June 10. | Sold merchandise on account, terms 2/10, n/30, to Holen for $12,700. Record the sale net of the discount. The cost of goods sold was $7,620. | |
15. | Loaned $24,000 cash to Pioneer Co., receiving a 30-day, 8% note. | |
20. | Received from Holen the amount due on the invoice of June 10, less 2% discount. | |
July 15. | Received the interest due from Pioneer Co. and a new 60-day, 9% note as a renewal of the loan of June 15. (Record both the debit and the credit to the notes receivable account.) | |
Sept. 13. | Received from Pioneer Co. the amount due on its note of July 15. | |
13. | Sold merchandise on account toWycoff Co., $60,000. The cost of goods sold was $36,000. | |
Oct. 12. | Accepted a 60-day, 6% note for $60,000 from Wycoff Co. on account. | |
Dec. 11. | Wycoff Co. dishonored the note dated October 12. | |
26. | Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 15 days at 12% computed on the maturity value of the note. |
Required:
Journalize the entries to record the transactions. Assume 360 days in a year. For a compound entry, if an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.
Jan. 13-sale | |||
Jan. 13-cost | |||
Mar. 10 | |||
May 9 | |||
June 10-sale | |||
June 10-cost | |||
June 15 | |||
June 20 | |||
July 15 | |||
Sept. 13- note | |||
Sept. 13-sale | |||
Sept. 13-cost | |||
Oct. 12 | |||
Dec. 11 | |||
Dec. 26 | |||