Question

PR 9-6A Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co.dur- ing the current year, Caldemeyer Co. sells and installs home and business security systems Jan. 3. Loaned $ 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% nose. Feb. 10. Sold merchandise on account to Bradford & Co, $24,000. The cost of the mer- OBJ. Ledger chandise sold was $14,400 13. Sold merchandise on account to Dry Creek Co, $60,000. The cost of merchan dise sold was $54,000 Mar. 12. Accepted a 60day, 7% note for S24.000 from Bradford & 020. on account. 14. Accepted a 60day, 9% note for $60,000 from Dry Creek Co. on account. Apr 5. Received 'he interest due fron' Trina Gelhaus and a new 120day, 9% note as a May 11. Received from Bradford & Co. the amount due on the note of March 12 July 12. Received from Dry Creek Co the amount owed on the dishonored note, plus Aug 1. Received from Trina Gelhaus the amount due on her note of April 3 renewal of the loan of January &. (Record both the debit and the credit to the notes receivable account) 13. Dry Creek Co. dishonored its note dated March 14 interest for 60 days at 12% computed on the maturity value of the net Oct. 5. Sold merchandise on account to Halloran Co, $13,500. The cost of the merchandise sold was $8,100. 15. Received from Halloran Co, the amount of the invoice of October 5. Instructions Journalize the entries to record the transactions

Answer 1

Date	Account title & explanation	Debit	Credit
Jan 3	Notes receivable	18,000
	Cash		18,000
	To record receiving notes issued.
Feb 10	Accounts receivable - Bradford & Co	24,000
	Sales revenue		24,000
	(To record sales revenue on account.)
Feb 10	Cost of goods sold	14,400
	Merchandise inventory		14,400
	(To record cost of goods sold.)
Feb 13	Accounts receivable - Dry Creek Co	60,000
	Sales revenue		60,000
	(To record sales revenue on account.)
Feb 13	Cost of goods sold	54,000
	Merchandise inventory		54,000
	(To record cost of goods sold.)
Mar 12	Notes receivable	24,000
	Accounts receivable - Bradford & Co		24,000
	(TO record accepted notes from customer.)
Mar 14	Notes receivable	60,000
	Accounts receivable - Dry Creek Co		60,000
	(TO record accepted notes from customer.)
Apr 3	Notes receivable	18,000
	Cash	360
	Notes receivable		18,000
	Interest revenue (18000*8%*90/360)		360
	(To record new notes.)
May 11	Cash	24,360
	Notes receivable		24,000
	Interest revenue (24000*9%*60/360)		360
	(To record notes matured.)
May 13	Accounts receivable - Dry Creek Co	60,900
	Notes receivable		60,000
	Interest revenue		900
	(To record notes dishonored.)
July 12	Cash	62,118
	Accounts receivable - Dry Creek Co		60,900
	Interest revenue (60900*12%*60/360)		1,218
	(To record cash receipts from customer.) (rate = 12%)
Aug 1	Cash	18,540
	Notes receivable		18,000
	Interest revenue (18000*9%*120/360)		540
	(To record notes matured.)
Oct 5	Accounts receivable - Halloran Co	13,500
	Sales revenue		13,500
	(To record sales revenue on account.)
Oct 5	Cost of goods sold	8,100
	Merchandise inventory		8,100
	(To record cost of goods sold.)
Oct 15	Cash	13,500
	Accounts receivable - Halloran Co		13,500
	(To record cash receipts from customer.)