The following transactions of Pan-American Paper Company occurred during 2006 and 2007.

Requirement 

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

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2006 Feb. 3 Purchased equipment for $40,000, signing a six-month, 9% note payable. 28 Recorded the week's sales of $60,000, one-third for cash, and two-thirds on credit. All sales amounts are subject to a 5% sales tax. Mar. 7 Sent last week's sales tax to the state. Apr. 30 Borrowed $100,000 on a long-term, 9% note payable that calls for annual payment of interest each April 30. Aug. 3 Nov. 30 Paid the six-month, 9% note at maturity. Purchased inventory at a cost of $7,000, signing a three- month, 6% note payable for that amount. Dec. 31 Accrued warranty expense, which is estimated at 3% of sales of $200,000. 2007 31 Accrued interest on all outstanding notes payable. Make a separate interest accrual entry for each note payable. Feb. 28 Apr. 30 Paid off the 6% inventory note, plus interest, at maturity. Paid the interest for one year on the long-term note payable.