Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Where did i make my mistake? Please help me solve where i loss or suppose to gain 5000 more on my total. I keep over

Where did i make my mistake? Please help me solve where i loss or suppose to gain 5000 more on my total. I keep over looking and i don't know where i messed up.

image text in transcribedimage text in transcribed

Year 1 5-Jan Purchased equipment for $100,000, signing a 9 month, 7% note payable. 26-Jan Recorded the week's sales of $80,000, 70% on account and 30% cash. All sales are subject to a 7% sales tax. 7-Feb Remitted last week's sales tax to the appropriate government agency. 1-May Borrowed $150,000 on a 5 year, 8% note payable calling for annual interest beginning next May 1. 1-Oct Issued $100,000 5 year, 10%, semiannual bonds payable. The bonds were issued at 105. 5-Oct Paid off the January 5 note payable. 30-Nov Purchased inventory at a cost of $7,200, signing a 3 month, 6% note payable for that amount. 31-Dec Accrued warranty expense is estimated at 3% of total sales of $900,000 (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-3 entries). Year 2 28-Feb Paid off the November 6% 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. Dan's Dependable Delivery General Journal Page 1 Post Ref. Debit Credit 100000 100000 Date Account Year 1 January 5 Equipment Note Payable 26 Cash Accounts Receivable Sales Sales Tax Payable February | 7 Sales Tax Payable 25680 599201 80000 5600 5600 56001 150000 150000 105000 105000 5000 50000 5000 55000 7200 7200 27000 27000 8000 8000 108 Cash May 1 Cash Note Payable October 1 Cash Bonds Payable Premium on Bonds Payable 5 Note Payable Interest Expense Cash November 30 Inventory Note Payable December 31 Warranty Expense Warranty Payable 31 Interest Expense Interest Payable 31 Interest Expense Interest Payable 31 Interest Expense Premium on Bonds Payable Interest Payable Year 2 February 28 Note Payable Interest Expense Interest Payable Cash 1 Interest Expense Interest Payable Premium on Bonds Payable Cash May 1 Interest Expense Interest Payable Cash Totals 108 2400 100 2500 7200 108 7380 April 2400 2500 100 50001 4000 8000 12000 575388 570388

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

MBA Accounting

Authors: Roger Hussey

1st Edition

0230303374, 9780230303379

More Books

Students also viewed these Accounting questions

Question

LO2 Discuss the constraints faced in a typical recruitment process.

Answered: 1 week ago