Here are some of the transactions carried out by Geary Company this year.
Jan. 7 Sold merchandise on account to Edge Imports; 2/10, n/30; $ 2,835.
Feb. 6 Received a 30-day, 6 percent note, dated this day, for $ 2,835 from Edge Imports on account.
Mar. 8 Received payment from Edge Imports for the amount owed on its note of February 6.
Apr. 25 Sold merchandise on account to Katie’s Gift Shop; 2/10, n/30; $ 3,460.
May 25 Received a 45-day, 5.75 percent note, dated May 25, for $ 3,460 from Katie’s Gift Shop on account.
July 9 Katie’s Gift Shop paid the interest on its note of May 25 and renewed the obligation by issuing a new 60- day, 6 percent note for $ 3,460, dated July 9.
Sept. 7 Received a check from Katie’s Gift Shop for the amount owed on its note of July 9.
15 Sold merchandise to Reinhold, Inc., for $ 4,898, receiving a 30-day, 6.25 percent note, dated this day (not previously recorded).
25 Discounted the note received from Reinhold, Inc., at All State Bank; discount rate, 7 percent.

1. Record these transactions in the general journal (pages 11 and 12).
2. Immediately after each journal entry, record each note receivable in the notes receivable register.
a. All notes are payable at All State Bank.
b. Fill in the date paid after journalizing the receipt of payment of the note or fill in “renewed” or “discounted” when appropriate.

  • CreatedOctober 21, 2014
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