# The following were selected from among the transactions completed by Saldemeyer Co. during the current year. Caldemexer 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. Use a compound journal entry with debits before credits.) 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. Required: Journalize the entries to record the transactions. Refer to the chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. CHART OF ACCOUNTS Caldemover Co. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Bradford & Co. REVENUE 122 Accounts Receivable-Dry Creek Co. 410 Sales 123 Accounts Receivable-Trina Gelhaus 420 Sales Discounts 124 Accounts Receivable-Halloran Co. 610 Interest Revenue 129 Allowance for Doubtful Accounts EXPENSES 131 Interest Receivable 510 Cost of Merchandise Sold 132 Notes Receivable 520 Sales Salaries Expense 141 Merchandise Inventory 521 Advertising Expense 145 Office Supplies 522 Depreciation Expense-Store Equipment 146 Store Supplies 523 Delivery Expense 151 Prepaid Insurance 524 Repairs Expense 181 Land 529 Selling Expenses 191 Store Equipment 530 Office Salaries Expense 192 Accumulated Depreciation Store Equipment 531 Rent Expense 193 Office Equipment 532 Depreciation Expense-Office Equipment 194 Accumulated Depreciation Office Equipment 533 Insurance Expense LIABILITIES 534 Office Supplies Expense 210 Accounts Payable 535 Store Supplies Expense 211 Salaries Payable 536 Credit Card Expense 213 Sales Tax Payable 537 Cash Short and Over 214 Interest Payable 538 Bad Debt Expense 215 Notes Payable 539 Miscellaneous Expense EQUITY 710 Interest Expense 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Toumalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY