Question

I need help with building a General Journal to record the transactions. The following list was selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems.

Jan. 3: Loaned $18,000 cash to a customer.

Answer 1

To record the loan transaction in the General Journal, Caldemeyer Co. would make an entry that debits the Loan Receivable account and credits the Cash account for $18,000.

Step-by-step explanation:

The transaction described is a loan made by Caldemeyer Co. to a customer. To record this transaction in the General Journal, Caldemeyer Co. would make the following entry:

Date: January 3

Account: Loan Receivable

Debit: $18,000

Account: Cash

Credit: $18,000

This entry shows that Caldemeyer Co. loaned $18,000 to a customer and received $18,000 in cash as a result.