Required: Record the transactions in a general journal.
Assume 360 days in a year. J. K. Pratt Co. had the following transactions:
July 20 Received a $730, 30-day, 4% note from J. Akita in payment for sale of merchandise.
Aug. 19 J. Akita paid note issued July 20 plus interest. 25 Sold merchandise on account to L. Beene, $1,030.
Sept. 5 L. Beene paid $190 and gave a $840, 30-day, 4% note to extend time for payment.
Oct. 5 L. Beene paid note issued September 5, plus interest. 10 Sold merchandise to R. Harris for $810: $70 plus a $740, 30-day, 4% note.
Nov. 9 R. Harris paid $150 plus interest on note issued October 10 and extended the note ($590) for 30 days.
Dec. 9 R. Harris paid note extended on November 9, plus interest.
10 Sold merchandise on account to B. Kraus, $1,500.
15 B. Kraus paid $140 on merchandise purchased on account, and gave a $1,360, 30-day, 4% note to extend time for payment. 20-2
Jan. 14 B. Kraus's note of December 15 is dishonored.
Feb. 13 Collected B. Kraus's dishonored note, plus interest at 4% on the maturity value.