Grossman Products began operations in 2021. The following selected transactions occurred from September 2021 through March 2022. Grossman's fiscal year ends on December 31. 2021: (a.) On September 5, Grossman opened a checking account and negotiated a short-term line of credit of up to $9,800,000 at 10% interest. The company is not required to pay any commitment fees. (b.) On October 1, Grossman borrowed $7,800,000 cash and issued a 5-month promissory note with 10% interest payable at maturity. (c.) Grossman received $2,800 of refundable deposits in December for reusable containers. (d.) For the September through December period, sales on account totaled $4,800,000. The state sales tax rate is 4% and 75% of sales are subject to sales tax. (e.) Grossman recorded accrued interest. 2022: (f.) Grossman paid the promissory note on the March 1 due date. (9.) Half of the storage containers are returned in March, with the other half expected to be returned over the next 6 months. Required: 1. Prepare the appropriate journal entries for the 2021 transactions. 2. Prepare the liability section of the balance sheet at December 31, 2021, based on the data supplied. 3. Prepare the appropriate journal entries for the events occurring in March of 2022. Required 1 Required 2 Required 3 Prepare the appropriate journal entries for the 2021 transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollars.) View transaction list Journal entry worksheet 1 2 3 4 5 > On September 5, Grossman opened a checking account and negotiated a short-term line of credit of up to $9,800,000 at 10% interest. The company is not required to pay any commitment fees. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Journal entry worksheet On October 1, Grossman borrowed $7,800,000 cash and issued a 5-month promissory note with 10% interest payable at maturity. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Journal entry worksheet Grossman received $2,800 of refundable deposits in December for reusable containers. Note: Enter debits before credits. General Journal Debit Credit Transaction c. Record entry Clear entry View general journal Journal entry worksheet For the September through December period, sales on account totaled $4,800,000. The state sales tax rate is 4% and 75% of sales are subject to sales tax. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet Grossman recorded accrued interest. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general journal Required 1 Required 2 >
