Learning Objective 1, 2, 3, 4: Record liability-related transactions) The followingtransactions of Smooth Sounds Music Company occurred during 2018 and 2019:2018Mar 3 Purchased a piano (inventory) for $65,000, signing a six-month, 8%note payable.May 31 Borrowed $105,000 on an 6% one-year note payable.Sep 3 Paid the six-month, 8% note at maturity.Dec 31 Accrued warranty expense, which is estimated at 1.5% of sales of $193,000.31 Accrued interest on the outstanding note payable.2019May 31 Paid the outstanding note payable at maturity.Requirement1. Record the transactions in Smooth Sounds’ journal. Explanations are not required

Learning Objective 1, 2, 3, 4: Record liability-related transactions) The followingtransactions of Smooth Sounds Music Company occurred during 2018 and 2019:2018Mar 3 Purchased a piano (inventory) for $65,000, signing a six-month, 8%note payable.May 31 Borrowed $105,000 on an 6% one-year note payable.Sep 3 Paid the six-month, 8% note at maturity.Dec 31 Accrued warranty expense, which is estimated at 1.5% of sales of $193,000.31 Accrued interest on the outstanding note payable.2019May 31 Paid the outstanding note payable at maturity.Requirement1. Record the transactions in Smooth Sounds’ journal. Explanations are not 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

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.10E

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