P9-80B. (Learning Objective 1: Recording liability-related transactions) The following transactions of Lovely Melody Music Company occurred during 20X0 and 20X1:

Requirement 1. Record the transactions in Lovely Melody Music Company’s journal. Explanations are not required.

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20X0 Mar 3 May 31 Sep 3 Dec 31 31 20X1 May 31 Purchased a piano (inventory) for 35,000, signing a six-month, 10% note payable. Borrowed 75,000 on an 8% note payable that calls for annual installment payments of 15,000 principal plus interest. Recorded the short-term note payable in a separate account from the long-term note payable. Paid the six-month, 10% note at maturity. Accrued warranty expense, which is estimated at 1.5% of sales of 198,000. Accrued interest on the outstanding note payable. Paid the first installment and interest for one year on the outstanding note payable.