Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need the journal entries for these Please use these words and these words only: Accounts Receivable, cash, equipment, estimated warranty payable, interest expense, interest
I need the journal entries for these
Please use these words and these words only:
Accounts Receivable, cash, equipment, estimated warranty payable, interest expense, interest payable, inventory, notes payable long term, notes payable short term, sales revenue, sales tax payable, warranty expense.
i More Info 1 2016 Feb 3 Purchased equipment for $7,000, signing a six-month, 11% note payable 28 Recorded the week's sales of $69,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 6% sales tax. Ignore cost of goods sold Mar7 Sent last week's sales tax to the state Apr 30 Borrowed $220,000 on a four-year, 12% note payable that calls for annual payment of Aug 3 Paid the six-month, 11% note at maturity. Nov 30 Purchased inventory at a cost of S8700, signing a three-month, 12% note payable for Dec 31 Accrued warranty expense, which is estimated at 7.0% of total sales of $600,000. interest each April 30 that amount. 31 Accrued interest on all outstanding notes payable. Accrued interest for each note separately 2017 Feb 28 Paid off the 12% inventory note, plus interest at maturity Apr 30 Paid the interest for one year on the long-term note payable Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started