the following items were selected from among the transactions completed by sounds an 643560

Apr. 7.

Borrowed $36,000 from First Financial Company, issuing a 60 day, 8% note for

that amount.

May 10.

Purchased equipment by issuing a $125,000, 120 day note to Milford Equipment

Co., which discounted the note at the rate of 6%.

June 6.

Paid First Financial Company the interest due on the note of April 7 and

renewed the loan by issuing a new 30 day, 9% note for $36,000. (Record both

the debit and credit to the notes payable account.)

July 6.

Paid First Financial Company the amount due on the note of June 6.

Aug. 3.

Purchased merchandise on account from Hamilton Co., $15,000, terms, n/30.

Sept. 2.

Issued a 60 day, 6% note for $15,000 to Hamilton Co., on account.

7

Paid Milford Equipment Co. the amount due on the note of May 10.

Nov. 1.

Paid Hamilton Co. the amount owed on the note of September 2.

15

Purchased store equipment from Merchandising Systems Co. for $150,000,

paying $55,500 and issuing a series of seven 8% notes for $13,500 each, coming

due at 30 day intervals.

Dec. 15.

Paid the amount due Merchandising Systems Co. on the first note in the series

issued on November 15.

21

Settled a personal injury lawsuit with a customer for $30,000, to be paid in January.

Sounds and Sight Stores accrued the loss in a litigation claims payable account.