The following transactions of Lexington Pharmacies occurred during 2006 and 2017:

Requirement 

Record the transactions in Lexington's general journal. Explanations are not required. 

Transcribed Image Text:

2006 Jan. 9 Purchased computer equipment at a cost of $8,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $60,000, three-fourths on credit, and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Feb. 5 Feb. 28 July 9 Aug. 31 Sent the last week's sales tax to the state. Borrowed $200,000 on a 4-year, 9% note payable that calls for annual installment payments of $50,000 principal plus interest. Record the short-term and the long-term portions of the note payable in two separate accounts. Paid the six-month, 8% note, plus interest, at maturity. Purchased inventory for $3,000, signing a six-month, 10% note payable. Dec. 31 Accrued warranty expense, which is estimated at 3% of sales of $600,000. 2007 31 Accrued interest on all outstanding notes payable. Make a separate interest accrual entry for each note payable. Feb. 28 Paid the first installment and interest for one year on the 4-year note payable. 28 Paid off the 10% note plus interest at maturity.