Question

Marienau Suppliers had the following transactions:
Mar. 1 Sold merchandise on account to G. Perez $5,000.
20 G. Perez gave a $5,000, 90-day, 6% note to extend time for payment.
30 G. Perez's note is discounted at Commerce Bank at a discount rate of 8%.
Apr. 20 Received a $3,000, 60-day, 6% note from D. Larson in payment for sale of merchandise.
May 5 D. Larson's note is discounted at Commerce Bank at a discount rate of 7%.
June 19 D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $40 bank fee.
July 31 D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $40 bank fee, and interest at 6% on the maturity value plus the bank fee.
Aug. 1 Sold merchandise on account to A. Bauer $5,600.
12 A. Bauer paid $400 and gave a $5,200, 30-day, 5% note to extend time for payment.
Sept. 11 A. Bauer paid $400, plus interest, and gave a new $4,800, 60-day, 6% note to extend time for payment.
26 A. Bauer's note is discounted at Commerce Bank at a discount rate of 7.5%.
Nov. 10 A. Bauer's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $40 bank fee.
Dec. 15 A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $40 bank fee, and interest at 6% on the maturity value plus the bank fee.

REQUIRED
Record the transactions in a general journal.



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  • CreatedJune 07, 2014
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