Accounting for several current liabilities (Learning Objectives 2 & 3) 2025 min. The following transactions of Daltons
Question:
Accounting for several current liabilities (Learning Objectives 2 & 3)
20–25 min.
The following transactions of Dalton’s Marine Supply occurred during 2014 and 2015:
2014 Feb 3 28 Mar 7 Apr 30 Aug 3 Nov 30 Dec 31 31 2015 Feb 28 Apr 30 Purchased equipment for $26,000, signing a six-month, 5% note payable.
Recorded the week’s sales of $87,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 7% sales tax. Ignore cost of goods sold.
Sent last week’s sales tax to the state.
Borrowed $225,000 on a four-year, 8% note payable that calls for annual payment of interest each April 30.
Paid the six-month, 5% note at maturity.
Purchased inventory at a cost of $7,200, signing a three-month, 6% note payable for that amount.
Accrued warranty expense, which is estimated at 1.5% of total sales of $812,000.
Accrued interest on all outstanding notes payable. Accrued interest for each note separately.
Paid off the 6% inventory note, plus interest, at maturity.
Paid the interest for one year on the long-term note payable.
Requirement 1. Record the transactions in the company’s journal. Explanations are not required.
AppendixLO1
Step by Step Answer:
Financial Accounting
ISBN: 9781292019543
3rd Global Edition Edition
Authors: Robert Kemp, Jeffrey Waybright, Pearson Education