Presented below are the transactions of Lucky Luck Company:

September 1 Borrowed $300,000 from New York Bank for 8%, 6 months note

September 8 Sold 550 units merchandise at $25 per unit, plus 10% sales tax, but not billed yet to customer

September 16 Sold merchandise for cash total $38,000, which includes 10% sales taxes

September 22 Received $4,000 cash payment for merchandise that will be delivered in the next two weeks

September 28 Sold 700 units of a new product on credit at $25 per unit, plus 10% sales tax. This new product is subject to a 1year warranty

Instructions:

1. Journalize the September transactions

2. Journalize the adjusting entries on September 30 for: (A) the interest of note payable and (B) estimated warranty liability assuming warranty costs are expected to equal 8% of sales of the new product

3. Prepare the current liabilities section of the statement of financial position on September 30