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 Sold merchandise on account to Dry Creek Co., $60,000. The cost of merchandise sold was $54,000 13. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account Mar. 12 14. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Ap. 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 Received from Trina Gelhaus the amount due on her note of April 3. Aug. 1 Sold merchandise on account to Halloran Co., $13,500. The cost of the merchandise sold was $8,100 Oct. 5 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 ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 420 Sales Discounts 121 Accounts Receivable-Bradford & Co. 610 Interest Revenue 122 Accounts Receivable-Dry Creek Co EXPENSES 123 Accounts Receivable-Trina Gelhaus 510 Cost of Merchandise Sold 124 Accounts Receivable-Halloran Co. 520 Sales Salaries Expense 129 Allowance for Doubtful Accounts 521 Advertising Expense 131 Interest Receivable 522 Depreciation Expense-Store Equipment 132 Notes Receivable 523 Delivery Expense 141 Merchandise Inventory 524 Repairs Expense 145 Office Supplies 529 Selling Expenses 146 Store Supplies 530 Office Salaries Expense 151 Prepaid Insurance 531 Rent Expense 181 Land 532 Depreciation Expense-Office Equipment 191 Store Equipment 533 Insurance Expense 192 Accumulated Depreciation-Store Equipment 534 Office Supplies Expense 193 Office Equipment 535 Store Supplies Expense 194 Accumulated Depreciation-Office Equipment 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 538 Bad Debt Expense 539 Miscellaneous Expense 211 Salaries Payable 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 215 Notes Pavable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary ACCOUNTING EQUATION JOURNAL DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 4 6 7 8 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 29 30 32 34 36 to
