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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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