Question

In: Accounting

The following were selected from among the transactions completed during the current year by Danix Co.,...

The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:

Jan. 21. Sold merchandise on account to Black Tie Co., $41,400. The cost of merchandise sold was $24,840.
Mar. 18. Accepted a 60-day, 9% note for $41,400 from Black Tie Co. on account.
May 17. Received from Black Tie Co. the amount due on the note of March 18.
June 15. Sold merchandise on account to Pioneer Co. for $17,900. The cost of merchandise sold was $10,740.
21. Loaned $24,000 cash to JR Stutts, receiving a 30-day, 6% note.
25. Received from Pioneer Co. the amount due on the invoice of June 15.
July 21. Received the interest due from JR Stutts and a new 60-day, 8% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.)
Sept. 19. Received from JR Stutts the amount due on her note of July 21.
22. Sold merchandise on account to Wycoff Co., $40,000. The cost of merchandise sold was $24,000.
Oct. 14. Accepted a 60-day, 6% note for $40,000 from Wycoff Co. on account.
Nov. 13. Wycoff Co. dishonored the note dated October 14.
Dec. 28. 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.

Solutions

Expert Solution

Journal Entries
Date Account Title and explanation Debit Credit
Jan, 21 Black Tie Co. $        41,400.00
     To Sales $          41,400.00
Cost of Goods Sold $        24,840.00
Jan, 21        To Merchandise $          24,840.00
9% Note $        41,400.00
Mar, 18        To Black Tie Co.
May, 17 Pioneer Co. $        17,900.00
     To Sales $          17,900.00
Cost of Goods Sold $        10,740.00
June, 15        To Merchandise $          10,740.00
6 % Note $        24,000.00
June, 21            To Cash $          24,000.00
June, 25 Cash $        17,900.00
      To Pioneer Co. $          17,900.00
July , 21 Cash ($ 24,000 X 6% $30/360) $              120.00
      To Interest Revenue $                120.00
July , 21 8% Note $        24,000.00
      To 6% Note $          24,000.00
Sept, 19 Cash $        24,320.00
       To 8% Note $          24,000.00
       To Interest Revenue ( $ 24,000 X 8% X 60/360) $                320.00
Sept, 22 Wycoff $        40,000.00
     To Sales $          40,000.00
Cost of Goods Sold $        24,000.00
Sept, 22        To Merchandise $          24,000.00
6% Note $        40,000.00
Oct, 14        To Wycoff $          40,000.00
Nov, 14 Wycoff $        40,400.00
     To 6% interest $          40,000.00
      To interest revenue $                400.00
Dec, 28 Cash $        40,602.00
    To Wycoff $          40,400.00
      To interest revenue($ 40,400 X 12% X 15/360) $                202.00

Related Solutions

The following were selected from among the transactions completed during the current year by Danix Co.,...
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...
The following were selected from among the transactions completed during the current year by Danix Co.,...
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., $41,100. The cost of goods sold was $24,660. Mar. 10. Accepted a 60-day, 8% note for $41,100 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...
The following were selected from among the transactions completed during the current year by Danix Co.,...
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: Jan. 21. Sold merchandise on account to Black Tie Co., $28,000. The cost of merchandise sold was $16,800. Mar. 18. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on account. May 17. Received from Black Tie Co. the amount due on the note of March 18. June 15. Sold merchandise on account to Pioneer Co. for $17,700,...
The following were selected from among the transactions completed during the current year by Danix Co.,...
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., $30,300. The cost of goods sold was $18,180. Mar. 10. Accepted a 60-day, 6% note for $30,300 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...
The following were selected from among the transactions completed during the current year by Danix Co.,...
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...
The following were selected from among the transactions completed by Caldemeyer Co. during the current year....
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. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of merchandise sold was $54,000. Mar. 12 Accepted a 60-day,...
The following were selected from among the transactions completed by Caldemeyer Co. during the current year....
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. Jan. 3. Loaned $21,600 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford & Co., $25,200. The cost of the merchandise sold was $15,120. 13. Sold merchandise on account to Dry Creek Co., $55,200. The cost of merchandise sold was $49,680. Mar. 12. Accepted a 60-day,...
The following were selected from among the transactions completed by Caldemeyer Co. during the current year....
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. Jan. 3 Loaned $15,600 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $28,200. The cost of the merchandise sold was $16,920. 13 Sold merchandise on account to Dry Creek Co., $64,800. The cost of merchandise sold was $58,320. Mar. 12 Accepted a 60-day,...
The following items were selected from among the transactions completed by O’Donnel Co. during the current year:
The following items were selected from among the transactions completed by O’Donnel Co. during the current year:Jan. 10. Purchased merchandise on account from Laine Co., $414,000, terms n/30.Feb. 9. Issued a 30-day, 4% note for $414,000 to Laine Co., on account.Mar. 11. Paid Laine Co. the amount owed on the note of February 9.May 1. Borrowed $180,000 from Tabata Bank, issuing a 45-day, 4% note.June 1. Purchased tools by issuing a $228,000, 60-day note to Gibala Co., which discounted the...
The following items were selected from among the transactions completed by Sherwood Co during the current...
The following items were selected from among the transactions completed by Sherwood Co. during the current year:Mar.1Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30.31Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account.Apr.30Paid Kirkwood Co. the amount owed on the note of March 31.Jun.1Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note.Jul.1Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.16Paid Triple Creek Bank...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT