FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:14
Accepted a 60-day, 9% note for $62,400 from Dry Creek Co. on account
Apr. 3
Received the interest due from Trina Gelhaus and a new 120-day, 10% 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 belore 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
Aug 1.
Received from Trina Gelhaus the amount due on her note of April 3.
Oct 5
Sold merchandise on account to Halloran Co, $14,900 The cost of the merchandise sold was $8.940
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 tiles Assume a 360-day year w
calculating interest
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