journalizing liability transactions the following transactions of denver pharmacies 643879

Journalizing liability transactions The following transactions of Denver Pharmacies occurred during 2011 and 2012:

2011

 

9Jan

Purchased computer equipment at a cost of $9,000, signing a six month,

 

6% note payable for that amount.

29

Recorded the week’s sales of $64,000, three fourths on credit, and

 

one fourth for cash. Sales amounts are subject to a 6% state sales tax.

5Feb

Sent the last week’s sales tax to the state.

28

Borrowed $204,000 on a four year, 10% note payable that calls for $51,000

 

annual installment payments plus interest. Record the current and

 

long term portions of the note payable in two separate accounts.

9Jul

Paid the six month, 6% note, plus interest, at maturity.

31Aug

Purchased inventory for $12,000, signing a six month, 9% note payable.

31Dec

Accrued warranty expense, which is estimated at 2% of sales of $603,000.

31

Accrued interest on all outstanding notes payable. Make a separate

 

interest accrual for each note payable.

2012

 

28Feb

Paid the first installment and interest for one year on the four year note payable.

 

 

29

Paid off the 9% note plus interest at maturity.

Requirement

1. Journalize the transactions in Denver’s general journal. Explanations are not required.