Question

Marienau Suppliers had the following transactions:

Mar. 1	Sold merchandise on account to G. Perez, $5,400.
20	G. Perez gave a $5,400, 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 $2,700, 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 $50 bank fee.
July 31	D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee.
Aug. 1	Sold merchandise on account to A. Bauer, $5,000.
12	A. Bauer paid $500 and gave a $4,500, 30-day, 5% note to extend time for payment.
Sept. 11	A. Bauer paid $500, plus interest, and gave a new $4,000, 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 $50 bank fee.
Dec. 15	A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $50 bank fee, and interest at 6% on the maturity value plus the bank fee.

Required:

Record the transactions in a general journal. Assume 360 days in a year.

Page:  

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Mar. 1	Accounts Receivable/G. Perez
2		Sales					2
3							3
4	20	Notes Receivable					4
5		Accounts Receivable/G. Perez					5
6							6
7	30	Cash					7
8		Interest Expense					8
9		Notes Receivable					9
10							10
11	Apr. 20	Notes Receivable					11
12		Sales					12
13							13
14	May 5	Cash					14
15		Notes Receivable					15
16		Interest Revenue					16
17							17
18	June 19	Accounts Receivable/D. Larson
19		Cash					19
20							20
21	July 31	Cash					21
22		Accounts Receivable/D. Larson					22
23		Interest Revenue					23
24							24
25	Aug. 1	Accounts Receivable/A. Bauer					25
26		Sales					26
27							27
28	12	Cash					28
29		Notes Receivable					29
30		Accounts Receivable/A. Bauer					30
31							31
32	Sept. 11	Cash					32
33		Notes Receivable (new note)					33
34		Notes Receivable (old note)					34
35		Interest Revenue					35
36							36
37	26	Cash					37
38		Notes Receivable					38
39		Interest Revenue					39
40							40
41	Nov. 10	Accounts Receivable/A. Bauer					41
42		Cash					42
43							43
44	Dec. 15	Cash					44
45		Accounts Receivable/A. Bauer					45
46		Interest Revenue					46
47							47

Answer 1