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., $35,700. The cost of goods sold was $21,420. | |
Mar. 10. | Accepted a 60-day, 9% note for $35,700 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 1/10, n/30, to Holen for $12,600. Record the sale net of the discount. The cost of goods sold was $7,560. | |
15. | Loaned $24,000 cash to Pioneer Co., receiving a 30-day, 6% note. | |
20. | Received from Holen the amount due on the invoice of June 10, less 1% discount. | |
July 15. | Received the interest due from Pioneer Co. and a new 60-day, 8% 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 | Accounts Receivable-Black Tie Co. | ||
Sales | |||
Jan. 13-cost | Cost of Goods Sold | ||
Inventory | |||
Mar. 10 | Notes Receivable | ||
Accounts Receivable-Black Tie Co. | |||
May 9 | Cash | ||
Notes Receivable | |||
Interest Revenue | |||
June 10-sale | Accounts Receivable-Holen | ||
Sales | |||
June 10-cost | Cost of Goods Sold | ||
Inventory | |||
June 15 | Notes Receivable | ||
Cash | |||
June 20 | Cash | ||
Accounts Receivable-Holen | |||
July 15 | Notes Receivable | ||
Cash | |||
Notes Receivable | |||
Interest Revenue | |||
Sept. 13- note | Cash | ||
Notes Receivable | |||
Interest Revenue | |||
Sept. 13-sale | Accounts Receivable-Wycoff Co. | ||
Sales | |||
Sept. 13-cost | Cost of Goods Sold | ||
Inventory | |||
Oct. 12 | Notes Receivable | ||
Accounts Receivable-Wycoff Co. | |||
Dec. 11 | Accounts Receivable-Wycoff Co. | ||
Notes Receivable | |||
Interest Revenue | |||
Dec. 26 | Cash | ||
Accounts Receivable-Wycoff Co. | |||
Interest Revenue |
Date | Accounting titles & Explanations | Debit | Credit | ||||
13-Jan | Accounts receivable-Black tie co | 35,700 | |||||
sales | 35,700 | ||||||
cost of goods sold | 21,420 | ||||||
Merchandise inventory | 21,420 | ||||||
10-Mar | Note receivable | 35,700 | |||||
Accounts receivable-Black tie co | 35,700 | ||||||
9-May | Cash | 36,236 | |||||
interest revenue (35700*9%*60/360) | 536 | ||||||
Note Receivable | 35,700 | ||||||
10-Jun | Accounts receivable-holen | 12,474 | |||||
Sales | (12,600*99%) | 12,474 | |||||
cost of goods sold | 7,560 | ||||||
merchandises inventory | 7,560 | ||||||
15-Jun | Note receivable -pioneer co | 24,000 | |||||
cash | 24,000 | ||||||
20-Jun | Cash | 12,474 | |||||
Accounts receivable -Holen | 12,474 | ||||||
15-Jul | 8% note receivable | 24,000 | |||||
cash | 120 | ||||||
interest revenue | (24000*6%*30/360) | 120 | |||||
6% note receivable | 24,000 | ||||||
13-Sep | cash | 24,320 | |||||
interest revenue | (24000*8%*60/360) | 320 | |||||
8% note receivable | 24,000 | ||||||
13-Sep | Accounts receivable-wycoff | 60,000 | |||||
sales | 60,000 | ||||||
cost of goods sold | 36,000 | ||||||
Merchandise inventory | 36,000 | ||||||
12-Oct | Note receivable | 60,000 | |||||
accounts receivable -wycoff | 60,000 | ||||||
11-Dec | Account receivable | 60,600 | |||||
interest revenue | 600 | ||||||
note receivable(60000*6%*60/360) | 60,000 | ||||||
26-Dec | Cash | 60,903 | |||||
interest revenue | (60600*12%*15/360) | 303 | |||||
Account receivable | 60,600 | ||||||