Question

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 for $11,400. Record the sale net of the discount. The cost of goods sold was $6,840. 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 Check My Work

Answer 1

13-Jan	Accounts Receivable-Black Tie	30300
	Sales		30300
13-Jan	Cost of goods sold	18180
	Inventory		18180
10-Mar	Notes Receivable	30300
	Accounts Receivable-Black Tie		30300
09-May	Cash	30603
	Notes Receivable		30300
	Interest Income		303	=30300*6%/360*60
10-Jun	Accounts Receivable-Holen	11172		=11400*(100-2)%
	Sales		11172
10-Jun	Cost of goods sold	6840
	Inventory		6840
15-Jun	8%Note Receivable -Pioneer	24000
	Cash		24000
20-Jun	Cash	11172
	Accounts Receivable-Holen		11172
15-Jul	9% Note Receivable-Pioneer	24000
	Cash	160		=24000*8%*30/360
	8%Note Receivable -Pioneer		24000
	Interest Income		160
13-Sep	Cash	24360
	9% Note Receivable-Pioneer		24000
	Interest Income		360	=24000*9%*60/360
13-Sep	Accounts Receivable-Wycof	60000
	Sales		60000
13-Sep	Cost of goods sold	36000
	Inventory		36000
12-Oct	6% Note receivable	60000
	Accounts Receivable-Wycof		60000
11-Dec	Accounts Receivable-Wycof	60600
	Interest Income		600	=60000*6%*60/360
	6% Note receivable		60000
26-Dec	Cash	60903
	Interest Income		303	=(60000+600)*12%*15/360
	Accounts Receivable-Wycof		60600