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 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 ) 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, less 2 discount CHART OF ACCOUNTS Caldemeyer Co General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable Bradford Co 122 Accounts Receivable Dry Creek Co 123 Accounts Receivable Trina Gelhaus 124 Accounts Receivable Halloran Co 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 420 Sales Discounts 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense Journal Shaded cells have feedback Journalize the entries to record the transactions Refer to the Chart of Accounts for exact wording of account titles How does grading work PAGE 10 JOURNAL Score 400 460 DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Points 0 87 1 Feedback Check My Work When the note is received, the accounts receivable is credited to transform it into a note receivable which is debited for the debt Assume a 360 day year Determine the due date on each note The maturity value is the amount that must be paid at the due date of the note At the due date, the company records the receipt of cash for the maturity value and reduces the notes receivable for the face value and increases interest revenue for the short term note interest

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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

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. 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.) 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, less 2% discount.

CHART OF ACCOUNTS

Caldemeyer Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Bradford & Co.
122	Accounts Receivable-Dry Creek Co.
123	Accounts Receivable-Trina Gelhaus
124	Accounts Receivable-Halloran Co.
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
420	Sales Discounts
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Store Equipment
523	Delivery Expense
524	Repairs Expense
529	Selling Expenses
530	Office Salaries Expense
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Office Supplies Expense
535	Store Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

Journal

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Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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PAGE 10

JOURNAL

Score: 400/460

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0.87 / 1

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Check My Work

When the note is received, the accounts receivable is credited to transform it into a note receivable which is debited for the debt.

Assume a 360-day year. Determine the due date on each note. The maturity value is the amount that must be paid at the due date of the note.

At the due date, the company records the receipt of cash for the maturity value and reduces the notes receivable for the face value and increases interest revenue for the short-term note interest.