The following were selected from among the transactions completed by Caldemeyer

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 $14,400 cash to Trina Gelhaus, receiving a 90-day, 9% note. Feb. 10. Sold merchandise on account to Bradford & Co., $21,600. The cost of the merchandise sold was $12,960. 13. Sold merchandise on account to Dry Creek Co., $59,400. The cost of merchandise sold was $53,460. Mar. 12. Accepted a 60-day, 6% note for $21,600 from Bradford & Co. on account. 14. Accepted a 60-day, 9% note for $59,400 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 8% 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., $14,400, net/30. The cost of the merchandise sold was $8,640. 15. Received from Halloran Co. the amount of the invoice of October 5. Journalize the entries to record the transactions

Explanation / Answer

Caldemeyer Co. No.of days for interest calculation considered as 360 All Amounts in $ Date Particulars Debit Credit 03-Jan 9% 90-Day Note A/c 14400 To Cash A/c 14400 10-Feb Bradford & Co A/c 21600 To Sales A/c 21600 Sales A/c 12960 To Cost of Sales A/c 12960 13-Feb Dry Creek Co A/c 59400 To Sales A/c 59400 Sales A/c 53460 To Cost of Sales A/c 53460 12-Mar 6% 60-Day Note A/c 21600 To Bradford & Co A/c 21600 14-Mar 9% 60-Day Note A/c 59400 To Dry Creek Co A/c 59400 03-Apr Cash A/c 14724 To 9% 90-Day Note A/c 14400 To Interest on Note A/c 324 03-Apr 8% 120-Day Note A/c 14400 To Cash A/c 14400 11-May Cash A/c 21600 To 6% 60-Day Note A/c 21600 13-May Dry Creek Co A/c 59400 To 9% 60-Day Note A/c 59400 12-Jul Cash A/c 60588 To Dry Creek Co A/c 59400 To Interest on Note A/c 1188 01-Aug Cash A/c 14784 To 8% 120-Day Note A/c 14400 To Interest on Note A/c 384 05-Oct Halloran Co A/c 14400 To Sales A/c 14400 05-Oct Sales A/c 8640 To Cost of Sales A/c 8640 15-Oct Cash A/c 14400 To Halloran Co A/c 14400

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