Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 8, Problem 8.6APR
Sales and notes receivable transactions
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer 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 goods sold was $ 14,400. |
I3. | Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods 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, terms 2/10, n/30, to Halloran Co., $13,500. Record the sale net of the 2% discount. The cost of goods sold was $8,100. |
15. | Received from Halloran Co. the amount of the invoice of October 5, less 2% discount. |
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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 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.…
SALES AND CASH RECEIPTS TRANSACTIONS Sourk Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax. Beginning general ledger account balances were Cash, $9,586; and Accounts Receivable, $1,016. Beginning customer account balances included Whitaker Group, $1,016.Mar. 1 Sale on account No. 33C to Donachie & Co., $1,700 plus sales tax.3 Sale on account No. 33D to R. J. Kibubu, Inc., $2,190 plus sales tax.5 Donachie & Co. returned merchandise from Sale No. 33C for a credit(Credit Memo No. 66), $40 plus sales tax.7 Cash sales for the week were $3,140 plus sales tax.10 Received payment from Donachie & Co. for Sale No. 33C less CreditMemo No. 66.11 Sale on account No. 33E to Eck Bakery, $1,230 plus sales tax.13 Received payment from R. J. Kibubu for Sale No. 33D.14 Cash sales for the week were $4,100 plus sales tax.
Mar. 16 Eck Bakery returned merchandise from Sale No. 33E for a credit(Credit Memo No.…
Journal Entries for Accounts and Notes Payable Logan Company had the following transactions:
Apr.
8
Issued a $5,000, 60-day, six percent note payable in payment of an account with Bennett Company.
May
15
Borrowed $40,000 from Lincoln Bank, signing a 60-day note at nine percent.
Jun.
7
Paid Bennett Company the principal and interest due on the April 8 note payable.
Jul.
6
Purchased $12,000 of merchandise from Bolton Company; signed a 90-day note with ten percent interest.
Jul.
14
Paid the May 15 note due Lincoln Bank.
Oct.
2
Borrowed $30,000 from Lincoln Bank, signing a 120-day note at 12 percent.
Oct.
4
Defaulted on the note payable to Bolton Company.
Requireda. Record these transactions in general journal form.b. Record any adjusting entries for interest in general journal form. Logan Company has a December 31 year-end.
Round answers to nearest dollar. Use 360 days for interest calculations.a.
General Journal
Date
Description
Debit
Credit
Apr.8…
Chapter 8 Solutions
Corporate Financial Accounting
Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - Prob. 8DQCh. 8 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 8 - Prob. 10DQ
Ch. 8 - Direct write-off method Journalize the following...Ch. 8 - Allowance method Journalize the following...Ch. 8 - Percent of sales method At the end of the current...Ch. 8 - Analysis of receivables method At the end of the...Ch. 8 - Note receivable Prefix Supply Company received a...Ch. 8 - Prob. 8.1EXCh. 8 - Prob. 8.2EXCh. 8 - Entries for uncollectible accounts, using direct...Ch. 8 - Entries for uncollectible receivables, using...Ch. 8 - Entries to write off accounts receivable Creative...Ch. 8 - Providing for doubtful accounts At the end of the...Ch. 8 - Prob. 8.7EXCh. 8 - Aging of receivables schedule The accounts...Ch. 8 - Estimating allowance for doubtful accounts Evers...Ch. 8 - Adjustment for uncollectible accounts Using data...Ch. 8 - Estimating doubtful accounts Outlaw Bike Co. is a...Ch. 8 - Entry for uncollectible accounts Using the data in...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Effect of doubtful accounts on net income During...Ch. 8 - Effect of doubtful accounts on net income Using...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Determine due date and interest on notes Determine...Ch. 8 - Entries for notes receivable Valley Designs Issued...Ch. 8 - Entries for notes receivable The series of five...Ch. 8 - Entries for notes receivable, including year-end...Ch. 8 - Entries for receipt and dishonor of note...Ch. 8 - Entries for receipt and dishonor of notes...Ch. 8 - Receivables on the balance sheet List any errors...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Prob. 8.5BPRCh. 8 - Sales and notes receivable transactions The...Ch. 8 - Continuing Company AnalysisAmazon: Accounts...Ch. 8 - Ralph Lauren: Accounts receivable turnover and...Ch. 8 - Prob. 8.3ADMCh. 8 - Prob. 8.4ADMCh. 8 - Ethics In Action Bud Lighting Co. is a retailer of...Ch. 8 - Communication On January 1, Xtreme Co. began...
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