The following were among the transactions of National Yarn Shop this year (January 1 through December 31):

Instructions Record these transactions in a general journal (page 27).

Instructions for General Ledger Software 1. Journalize the entries in the general journal.
2. Print the journal entries.

Transcribed Image Text:

Jan. Feb. 25 Bought merchandise on account from Geneva Mills, $2,950; terms net 30 days. 24 Gave a 45-day, 10 percent note, dated February 24, for $2,950 to Geneva Mills to apply on account. Apr. 10 May 4 June Paid Geneva Mills the amount owed on the note of February 24. Bought merchandise on account from Tildon Company, $8,300; terms net 30 days. 3 Gave a 30-day, 9.5 percent note, dated June 3, for $8,300 to Tildon Company to apply on account. July 3 Paid Tildon Company the interest due on the note of June 3 and renewed the obligation by issuing a new 60-day, 9.5 percent note, dated July 3, for $8,300. Sept. 1 25 Paid Tildon Company the amount owed on the note of July 3. Borrowed $11,500 from Valley Bank for 90 days; discount rate is 11 percent. Accordingly, signed a discounted note for $11,500, dated September 25. (Use Interest Expense since the note will mature in the present fiscal period.) Dec. 24 Paid Valley Bank at maturity of loan.