The following were selected from among the transactions completed by Caldemeyer
ID: 2446877 • Letter: T
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.)
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, less 2% discount.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.
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
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, less 2% discount.
Explanation / Answer
Date Account Title Debit Credit Jan. 3. Notes Recievable 18000 Cash 18000 Feb. 10. Accounts Receivable-Bradford & Co. 24000 Sales 24000 Cost of Merchandise Sold 14400 Merchandise Inventory 14400 Feb.13 Accounts Receivable-Dry Creek Co. 60000 Sales 60000 Cost of Merchandise Sold 54000 Merchandise Inventory 54000 Mar. 12. Notes Recievable 24000 Accounts Receivable-Bradford & Co. 24000 Mar. 14. Notes Recievable 60000 Accounts Receivable-Dry Creek Co. 60000 Apr. 3 Cash 360 Interest Revenue 360 May 11. Cash 24280 Notes Recievable 24000 Interest Revenue 280 May 13. Accounts Receivable-Dry Creek Co. 60900 Notes Recievable 60000 Interest Revenue 900 July 12. Cash 62118 Accounts Receivable-Dry Creek Co. 60900 Interest Revenue 1218 Aug. 1. Cash 18540 Notes Recievable 18000 Interest Revenue 540 Oct. 5. Accounts Receivable-Halloran Co. 13500 Sales 13500 Cost of Merchandise Sold 8100 Merchandise Inventory 8100 Oct. 15. Cash 13230 Sales Discounts 270 Accounts Receivable-Halloran Co. 13500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.