Question
2020 Mar Apr 3 Purchased a Steinway piano (inventory) for $41,500, signing a six-month, 11% note. 30 Borrowed $52,000 on a 9% note payable that
2020 Mar Apr 3 Purchased a Steinway piano (inventory) for $41,500, signing a six-month, 11% note. 30 Borrowed $52,000 on a 9% note payable that calls for annual instalment payments of $26,000 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable. Sep 3 Paid the six-month, 11% note at maturity. Dec 2021 31 Accrued warranty expense, which is estimated at 4.5% of sales of $198,000. 31 Accrued interest on the outstanding note payable. Apr 30 Paid the first instalment plus interest for one year on the outstanding note payable
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