The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: January 21. March 18. May 17. June 15. Sold merchandise on account to Black Tie Co., $28,000. The cost of goods sold was $16,800. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on account. Received from Black Tie Co. the amount due on the note of March 18. Sold merchandise on account, terms 1/10, n/30, to Pioneer Co. for $17,700. Record the sale net of the discount. The cost of goods sold was $10,600. June 21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note. June 25. July 21. Received from Pioneer Co. the amount due on the invoice of June 15, less 1% discount. September 19. September 22. October 14. November 13. December 28. Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.) Received from JR Stutts the amount due on her note of July 21. Sold merchandise on account to Wycoff Co., $20,000. The cost of goods sold was $12,000. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on account. Wycoff Co. dishonored the note dated October 14. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity value of the note. Required: Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.
The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company: January 21. March 18. May 17. June 15. Sold merchandise on account to Black Tie Co., $28,000. The cost of goods sold was $16,800. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on account. Received from Black Tie Co. the amount due on the note of March 18. Sold merchandise on account, terms 1/10, n/30, to Pioneer Co. for $17,700. Record the sale net of the discount. The cost of goods sold was $10,600. June 21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note. June 25. July 21. Received from Pioneer Co. the amount due on the invoice of June 15, less 1% discount. September 19. September 22. October 14. November 13. December 28. Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21. (Record both the debit and the credit to the notes receivable account.) Received from JR Stutts the amount due on her note of July 21. Sold merchandise on account to Wycoff Co., $20,000. The cost of goods sold was $12,000. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on account. Wycoff Co. dishonored the note dated October 14. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity value of the note. Required: Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following were selected from among the transactions completed during the current year by Danix Co., an appliance wholesale company:
January 21.
March 18.
May 17.
June 15.
Sold merchandise on account to Black Tie Co., $28,000. The cost of goods sold was $16,800.
Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on account.
Received from Black Tie Co. the amount due on the note of March 18.
Sold merchandise on account, terms 1/10, n/30, to Pioneer Co. for $17,700. Record the sale net of the discount.
The cost of goods sold was $10,600.
June 21.
Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note.
June 25.
July 21.
Received from Pioneer Co. the amount due on the invoice of June 15, less 1% discount.
September 19.
September 22.
October 14.
November 13.
December 28.
Received the interest due from JR Stutts and a new 60-day, 9% note as a renewal of the loan of June 21.
(Record both the debit and the credit to the notes receivable account.)
Received from JR Stutts the amount due on her note of July 21.
Sold merchandise on account to Wycoff Co., $20,000. The cost of goods sold was $12,000.
Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on account.
Wycoff Co. dishonored the note dated October 14.
Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed
on the maturity value of the note.
Required:
Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume this is a year in which February has 28 days.
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