2017 Feb 3 Purchased equipment for $20000, signing a six-month, 9% note payable. Recorded the week's sales of $60000, one-third for cash and two-thirds on credit. Borrowed $100 000 on a four-year, 9% loan that calls for annual payments of interest each 30 April. Paid the six-month, 9% note at maturity. Purchased inventory at a cost of $7000, signing a three-month, 6% note payable for that amount. 28 Apr 30 Aug 3 Nov 30 Accrued warranty expense, which is estimated at 3% of sales of $200 000. Accrued interest on all outstanding notes and loans payable. Make a separate interest accrual entry for each amount payable. Dec 31 31 2018 Feb 28 Paid off the 6% inventory note, plus interest, at maturity. Paid the interest for one year on the long-term loan payable. Apr 30 Requirement Record the transactions in the general journal. Explanations aren't required.

2017 Feb 3 Purchased equipment for $20000, signing a six-month, 9% note payable. Recorded the week's sales of $60000, one-third for cash and two-thirds on credit. Borrowed $100 000 on a four-year, 9% loan that calls for annual payments of interest each 30 April. Paid the six-month, 9% note at maturity. Purchased inventory at a cost of $7000, signing a three-month, 6% note payable for that amount. 28 Apr 30 Aug 3 Nov 30 Accrued warranty expense, which is estimated at 3% of sales of $200 000. Accrued interest on all outstanding notes and loans payable. Make a separate interest accrual entry for each amount payable. Dec 31 31 2018 Feb 28 Paid off the 6% inventory note, plus interest, at maturity. Paid the interest for one year on the long-term loan payable. Apr 30 Requirement Record the transactions in the general journal. Explanations aren't required.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.1AP

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