Question

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, 8% note for $25,200 from Bradford & Co. on account.
14.	Accepted a 60-day, 9% note for $55,200 from Dry Creek Co. on account.
Apr. 3.	Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.)
May 11.	Received from Bradford & Co. the amount due on the note of March 12.
13.	Dry Creek Co. dishonored its note dated March 14.
July 12.	Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note.
Aug. 1.	Received from Trina Gelhaus the amount due on her note of April 3.
Oct. 5.	Sold merchandise on account to Halloran Co., $14,500, net/30. The cost of the merchandise sold was $8,700.
15.	Received from Halloran Co. the amount of the invoice of October 5.

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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Chart of Accounts

CHART OF ACCOUNTS
Caldemeyer Co.
General Ledger
ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Bradford & Co. 122 Accounts Receivable-Dry Creek Co. 123 Accounts Receivable-Trina Gelhaus 124 Accounts Receivable-Halloran Co. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 420 Sales Discounts 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense

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Journal

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

Note:- I have assumed 360 days in year for calculating interest   

Journal Entries (Amounts in $)

Date	Description	Post Ref.	Debit	Credit
Jan. 3	Notes Receivable		21,600
	Cash			21,600
Feb. 10	Accounts Receivable-Bradford & Co.		25,200
	Sales			25,200
Feb. 10	Cost of Merchandise Sold		15,120
	Merchandise Inventory			15,120
Feb. 13	Accounts Receivable-Dry Creek Co.		55,200
	Sales			55,200
Feb. 13	Cost of Merchandise Sold		49,680
	Merchandise Inventory			49,680
Mar. 12	Notes Receivable		25,200
	Accounts Receivable-Bradford & Co.			25,200
Mar. 14	Notes Receivable		55,200
	Accounts Receivable-Dry Creek Co.			55,200
Apr. 3	Notes Receivable		21,600
	Cash		432
	Notes Receivable			21,600
	Interest Revenue ($21,600*8%*90/360)			432
May 11	Cash ($25,200+$336)		25,536
	Notes Receivable			25,200
	Interest Revenue ($25,200*8%*60/360)			336
May 13	Accounts Receivable-Dry Creek co. ($55,200+$828)		56,028
	Notes Receivable			55,200
	Interest Revenue ($55,200*9%60/360)			828
July 12	Cash ($56,028+$1,121)		57,149
	Accounts Receivable-Dry Creek co.			56,028
	Interest Revenue ($56,028*12%*60/360)			1,121
Aug. 1	Cash ($21,600+$648)		22,248
	Notes Receivable			21,600
	Interest Revenue ($21,600*9%*120/360)			648
Oct. 5	Accounts Receivable-Halloran Co.		14,500
	Sales			14,500
Oct. 5	Cost of Merchandise Sold		8,700
	Merchandise Inventory			8,700
Oct. 15	Cash		14,500
	Accounts Receivable-Halloran Co.			14,500