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Recording transactions There's the full question for reference but here are the new values: 2016 Feb 3 Purchased equipment for $20.000. signing a six-month, 4%
Recording transactions
There's the full question for reference but here are the new values:
2016 Feb 3 Purchased equipment for $20.000. signing a six-month, 4% note payable. 28 Recorded the week's sales of $51,000. one-third for cash, and two-thirds on account. All sales amounts are subject to a 4% sales tax. Ignore cost of goods sold. Mar 7 Sent last week's sales tax to the state. Apr 30 Borrowed $80,000 on a four-year, 12% note payable that calls for annual payment of interest each April 30. 3 Paid the six-month, 4% note at maturity. 30 Purchased inventory at a cost of $12,000, signing a three-month, 10% note payable for that amount. Dec 31 Accrued warranty expense, which is estimated at 7.0% of total sales of $730,000. 31 Accrued interest on all outstanding notes payable. Accrued interest for each note separately. 2017 Feb 28 Paid off the 10% inventory note plus interest, at maturity Apr 30 Paid the interest for one year on the long-term note payable. Aug Nov Begin by journalizing the 2016 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for $20,000, signing a six-month. 4% note payable. Debit Credit Date Feb 3, 2016 Journal Entry Accounts Equipment Notes payable, short-term 20.000 20,000 Feb 28: Recorded the week's sales of $51,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 4% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Credit Debit 17,880 Feb 28, 2016 35.360 Accounts receivable Sales revenue Sales tax payable 51.000 2,040 Mar 7: Sent last week's sales tax to the state. Journal Entry Date Accounts Credit Debit 2.040 Mar 7, 2018 Sales tax payable Cash 2,040 Apr 30: Borrowed $80,000 on a four-year, 12% note payable that calls for annual payment of interest each April 30. Credit Date Apr 30, 2018 Journal Entry Accounts Cash Notes payable, long-term Debit 80,000 80,000 Aug 3: Paid the six-month, 4% note at maturity Credit Date Aug 3, 2018 Journal Entry Accounts Notes payable, short-term Interest expense Cash Debit 20.000 20,400 Nov 30: Purchased inventory at a cost of $12,000, signing a three-month, 10% note payable for that amount. Date Credit Journal Entry Accounts Inventory Notes payable, short-term Debit 12,000 Nov 30, 2016 12,000 Dec 31: Accrued warranty expense, which is estimated at 7.0% of total sales of S730,000 Journal Entry Date Accounts Debit Credit Dec 31, 2016 Warranty expense 51,100 Estimated warranty payable 51,100 Dec 31: Acorued interest on all outstanding notes payable. Accrued interest for each note separately. Start by aceruing interest on the $80.000, four-year, 12% note from April 30. Journal Entry Credit Date Dec 31, 2016 Accounts Interest expense Interest payable Debit 6.4001 6,400 Now accrue interest at December 31 on the $12.000, three-month, 10% note from November 30. Date Debit Credit Journal Entry Accounts Interest expense Interest payable Dec 31, 2016 Next, record the 2017 transactions, beginning with repayment of the 10% inventory note. Feb 28: Paid off the 10% inventory note, plus interest, at maturity Date Debit Credit Feb 28, 2017 Journal Entry Accounts Interest payable Interest expense Notes payable, short-term Cash 2001 12.000 Apr 30: Paid the interest for one year on the long-term note payable Journal Entry Date Accounts Credit Apr 30, 2017 Interest payable Interest expense Cash Debit 6,400 3.200 2016 Feb 3 Purchased equipment for $20.000. signing a six-month, 11% note payable. 28 Recorded the week's sales of $72.000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 3% sales tax. Ignore cost of goods sold Mar 7 Sent last week's sales tax to the state. Apr 30 Borrowed $210,000 on a four-year, 8% note payable that calls for annual payment of interest each April 30. Aug 3 Paid the six-month, 11% note at maturity Nov 30 Purchased inventory at a cost of $8.400. signing a three-month, 12% note payable for that amount. Dec 31 Accrued warranty expense, which is estimated at 3.0% of total sales of $580,000 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 payableStep by Step Solution
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