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0 0 E13-1. Trade Notes Payable. On November 1, Barcelona Sales, Inc. purchased inventory costing $589,000 using a S-month trade note payable. The note carries an annual interest rate of 10%. Barcelona has a December 31 year-end. The company uses a perpetual inventory system. Required What is interest expense during the current year? What is the interest expense the following year? b. Prepare all required journal entries. E13-2. Unearned Revenues. On May 1 of the current year, Interstate Home and Casualty, Inc. collected $720,000 for 3-year insurance policies. Coverage begins on May 1. Interstate has a December 31 year-end. Required 1. Prepare the journal entries required on the date that Interstate collects the insurance premiums. b. Prepare the year-end adjusting entry for the current year. c. Prepare the journal entries required for the next 3 years. E13-3. Gift Cards. Diamond Depot sold $57,000 of gift cards during the current year and received cash. Diamond uses the proportional method for accounting for gift card breakage. Based on historical experience, it esti- mates a breakage percentage of 12% of its gift card sales. During the year, customers redeemed 546,300 of gift cards, purchasing inventory costing $28,000. The company uses a perpetual inventory system. Required a. Prepare the journal entries required to record the gift card activity b. What is the end-of-year liability for gift cards if the liability for them was $15.500 at the beginning of the year? E13-4. Sales Taxes Payable. Eaton Technology operates retail stores throughout the tristate area. The company's sales are subject to a 7% sales tax payable to the state and county government . At the end of the current year Eaton reported accounts receivable of $5,617,500 for credit sales, which includes the sales value of the merchandise sold plus the sales taxes. Required a. Prepare the journal entry required to record the sales for the current year. The company uses a periodic inventory system h. Prepare the journal entry to record the sales taxes Eaton remitted to the state and county taxing jurisdictions E13-5. Compensated Absences, Journal Entries. Bristol Stamping Company provides its 100 employees with a comprehensive benefits package. As part of this package. Bristol allows each of its 100 employees 12 paid sick days per year. The average wage rate for the current year is $140 per day. If employees do not take the sick days in the current year, the days carry over indefinitely and will be paid to the employee upon termina- tion, Employees took 60% of the days during the current year and carried over the remaining sick days to the next year. Required 2. Prepare the journal entry required to record the sick days for the current year. b. Prepare the journal entry required to record the payment of the sick days in the following year assuming that employees take all remaining days at that time. c. Independent of your answers to parts (a) and (b), prepare the journal entry to record the sick days taken in the next year assuming that the wage rate increased to $147 per day. Employees take all remaining days at that time. 0