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 $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, 7% note for $24,000 from Bradford & Co. on account.
	14	Accepted a 60-day, 9% note for $60,000 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. Use a compound journal entry with debits before credits.)
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., $13,500. The cost of the merchandise sold was $8,100.
	15	Received from Halloran Co. the amount of the invoice of October 5.

Required:

Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year when calculating interest.

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	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

Journal

Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year when calculating interest.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Answer 1

Date	Account titles & Explanations					Debit	Credit
3-Jan	Note receivable					18,000
	cash						18,000
10-Feb	Account receivable-		Bradford & Co.			24,000
	Sales						24,000
	cost of merchandise sold					14,400
	Merchadise inventory						14,400
13-Feb	Account receivable-		Dry creek co			60,000
	sales						60,000
	cost of merchandise sold					54,000
	Merchadise inventory						54,000
12-Mar	Note receivable					24,000
	Account receivable-		Bradford & Co.				24,000
14-Mar	Notes receivable					60,000
	Account receivable-		Dry creek co				60,000
3-Apr	note recievable					18,000
	cash					360
	note recievable						18,000
	interest revenue						360
11-May	Cash					24,280
	note receivable						24,000
	interest revenue						280
13-May	Account receivable-		Dry creek co			60,900
	Note recievable						60,000
	interest revenue						900
12-Jul	cash					62,118
	account receivable-		Dry creek co				60,900
	interest revenue						1218
1-Aug	cash					18,540
	note receivable						18,000
	interest revenue						540
5-Oct	Account receivable-		Halloran Co			13,500
	Sales						13,500
	cost of merchandise sold					8,100
	Merchadise inventory						8,100
15-Oct	cash					13,500
	Account receivable-		Halloran Co				13,500