Question
Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them. date yr 2/2 1 Purchased equipment for
Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them. date yr 2/2 1 Purchased equipment for 55,000, signed a 4 month note, 7.5%. 2/28 1 Recorded the month's sales of 175,000, one-sixth cash, five-sixth's credit. Sales tax rate is 4.6% 3/20 1 Sent Feb. sales tax to the state. 6/30 1 Borrowed $153,000 on a long-term note, 8.75% note payable Annual interest is to be paid each year on 6-30, starting yr. 2. 6/2 1 paid off the note dated 2-02-yr 1 10/31 1 bought inventory at a cost of 22,400. Signed a 5 month 4.5% note. 12/31 1 Accrued warranty expense, estimated at 1.5% of 550,000 of sales 12/31 1 Accrued Interest on ALL outstanding notes. 3/31 2 Paid off the inventory note at maturity, including interest. 6/30 2 Paid the annual interest on the 153,000 note.
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