The following were selected from among the transactions completed during the cur

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

Explanation / Answer

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

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