1. Journalizing liability transactions The following transactions of Philadelphia Pharmacies occurred during 2017 and 2018: 2017 Jan. 9 Purchased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. 29 Recorded the weeks sales of $68,000, three-fourths on credit and one-fourth for cash. maturity. Aug. 31 Purchased merchandise inventory for $3,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Dec. 31 Accrued warranty expense, which is estimated at 2% of sales of $609,000. 31 Accrued interest on all outstanding notes payable. 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity. Requirements: Journalize the transactions in Philadelphias general journal. Explanations are not required.

2. Journalizing issuance of stockat par and at a premium Colorado Corporation has two classes of stock: common, $3 par value; and preferred, $30 par value. Requirements 1. Journalize Colorados issuance of 4,500 shares of common stock for $6 per share. 2. Journalize Colorados issuance of 4,500 shares of preferred stock for a total of $135,000.