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, 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.)

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.

Instructions

Journalize the entries to record the transactions.

Answer:

Jan. 3 Notes Receivable18,000

Cash18,000

 Feb. 10 Accounts Receivable—Bradford & Co. 24,000

Sales24,000

10 Cost of Merchandise Sold 14,400

Merchandise Inventory14,400

13 Accounts Receivable—Dry Creek Co. 60,000

Sales60,000

13 Cost of Merchandise Sold 54,000

Merchandise Inventory54,000

 Mar. 12 Notes Receivable24,000

Accounts Receivable—Bradford & Co. 24,000

14 Notes Receivable60,000

Accounts Receivable—Dry Creek Co. 60,000

 Apr. 3 Notes Receivable18,000

Cash360

Notes Receivable18,000

Interest Revenue360

($18,000 × 8% × 90 ÷ 360).

 May 11 Cash24,280

Notes Receivable24,000

Interest Revenue280

($24,000 × 7% × 60 ÷ 360).

13 Accounts Receivable—Dry Creek Co. 60,900

Notes Receivable60,000

Interest Revenue900

($60,000 × 9% × 60 ÷ 360).

 July 12 Cash62,118

Accounts Receivable—Dry Creek Co. 60,900

Interest Revenue1,218

($60,900 × 12% × 60 ÷ 360).

 Aug. 1 Cash18,540

Notes Receivable18,000

Interest Revenue540

($18,000 × 9% × 120 ÷ 360).

 Oct. 5 Accounts Receivable—Halloran Co. 13,500

Sales13,500

5 Cost of Merchandise Sold8,100

Merchandise Inventory8,100

15 Cash13,500

Accounts Receivable—Halloran Co.13,500