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 $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 S60,000 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 date 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 Geihaus the amount due on her note of April 3.

 Oct.5. Sold merchandise on account to Halloran Co., S13,500, net/30. The cost of the merchandise sold was 58.100.

 15. Received from Halloran Co. the amount of the invoice of October 5.

Answer 1