The following transactions were carried out by Columbia Outfitting. Columbia has a December 31 year-end. You can round off interest to the nearest full month.
July 31: Brookside Co. repaid their overdue account receivable by issuing us a $3,000, three-month, 6% note.
August 31: Abbey Ltd. purchased merchandise for $4,500 and signed a 6 month, 8% note in payment. Our cost for the merchandise was $3,200.
September 30: Cage Co. borrowed $8,000 cash from us and issued us a six-month, 8% note.
October 31: Brookside repaid their note plus interest.
December 31: Journalized the year-end interest adjustment for the Abbey Ltd. note.
December 31: Journalized the year-end interest adjustment for the Cage Co. note.
February 28: Abbey repaid their note plus interest.
March 31. Cage Co. repaid their note plus interest.
Instructions
Journalize the above transactions.