Scenario:Use this journal page for all transactions.

Use Excel formulas in the cells to document your calculations.

Use professional formatting.

Scenario:

Year $1$

$5-$Jan Purchased equipment for $$120,000,$ signing a $9$ month, $8\%$ note payable.

$26-$Jan Recorded the week's sales of $$85,000,75\%$ on account and $25\%$ cash. All sales are

subject to a $7\mathrm{.}25\%$ sales tax.

$7-$Feb Remitted last week's sales tax to the appropriate government agency.

$1-$May Borrowed $$175,000$ on a $7$ year, $9\%$ note payable calling for annual interest beginning next May $1.$

$1-$Oct Iss $1$ ed $$100,0005$ year, $12\%,$ semiannual botnds payable. The bonds were issued at $104.$

$5-$Oct Paid off the January $5$ note payable.

$30-$Nov Purchased inventory at a cost of $$9,500,$ signing a $3$ month, $8\%$ note payable for that amount.

$31-$Dec Accrued warranty expense is estimated at $3\%$ of total sales of $$1,200,000($assume the

sales were already recorded$).$

$31-$Dec Record accrued interest on all outstanding notes and bonds payable $($make a separate journal

entry for each. HINT: there are two notes and one bond for a total of $3$ entries$).$

Year $2$

$28-$Feb Paid off the November $8\%$ inventory note plus interest at maturity.

$1-$Apr Paid the interest due on the semi$-$annual bonds.

$1-$May Paid the interest for one year on the long term note payable.

You are an employee of a full service bookkeeping and auditing firm called Accounting Solutions. You have a client named Dan. Dan

owns Dan's Dependable Delivery, a national delivery service. You are responsible for working with liability transactions.

Assessment Instructions:

For this project you will prepare a select group of journal entries for current and long term liabilities.

Record the transactions in the journal using formulas in the cells to show your calculations.

Make your calculations in the cells using Excel formulas.

Use professional formatting.

Use this template to complete your work. HINT: April $1$ interest expense debit $=2,800.$ ANOTHER HINT: total debits and credits in Journal $=714,028.$ PLEASE FOCUS ON THE HINTS