Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 The following transactions of Denver Pharmacies occurred during 2011 and 2012: 2011 9 Jan 29 Jan 5 Feb 28 Feb 9 Jul

image text in transcribed

Question 1 The following transactions of Denver Pharmacies occurred during 2011 and 2012: 2011 9 Jan 29 Jan 5 Feb 28 Feb 9 Jul 31 Aug 31 Dec 31 Dec Purchased computer equipment at a cost of RM9,000, singing a six month 6% note payable for that amount. Recorded the week's sale of RM64,000, three-fourth on credit and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Sent the last week's sales tax to the state. Borrowed RM204,000 on a four year, 10% note payable that calls for RM51,000 annual installment payment plus interest. Record the current and long term portions of the note payable in two separate accounts. Paid the six month, 6% note, plus interest, at maturity. Purchased inventory for RM12,000, signing a six month, 9% note payable. Accrued warranty expense, which is estimated at 2% of sales of RM603,000. Accrued interest on all outstanding note payable. Make a separate interest accrual for each note payable. 2012 28 Feb 29 Feb Paid the first installment and interest for one year on the four year note payable. Paid off the 9% note plus interest at maturity. Required: Journalize the transactions in Denver's general journal. Explanations are not required.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

10th Canadian Edition, Volume 1

978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736

More Books

Students also viewed these Accounting questions

Question

Evaluate the nature of the hostguest relationship

Answered: 1 week ago

Question

Does the hostguest relationship mean anything in the modern world?

Answered: 1 week ago