The following transactions of Drumheller Technology of Calgary, Alberta, occurred during 2013 and 2014. The company's year-end is December 31.
2013
Mar. 3 Purchased a machine for $66,000 plus 5-percent GST, signing a six-month, 3-percent note payable.
31 Recorded the month's sales of $134,500, one-quarter for cash, and three-quarters on credit. All sales amounts are subject to 5-percent GST, to be calculated on the sales of $134,500.
Apr. 7 Paid March's GST to the Receiver General.
May 31 Borrowed $75,000 with a 5-percent note payable that calls for annual installment payments of $15,000 principal plus interest.
Sept. 3 Paid the six-month, 3-percent note at maturity.
30 Purchased inventory at a cost of $25,000 plus GST, signing a 5-percent, six-month note payable for that amount.
Dec. 31 Accrued warranty expense, which is estimated at 3 percent of annual sales of $1,445,000.
31 Accrued interest on all outstanding notes payable. Make a separate interest accrual entry for each note payable.
2014
Mar. 31 Paid off the 5-percent inventory note, plus interest, at maturity.
May 31 Paid the first installment and interest for one year on the long-term note payable.
Required
Record the transactions in the company's general journal. Explanations are not required. Use days in any interest accrual calculations, not months. Round all amounts to the nearest whole dollar.