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 |
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9Jan |
Purchased computer equipment at a cost of $9,000, signing a six month, |
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6% note payable for that amount. |
29 |
Recorded the week’s sales of $64,000, three fourths on credit, and |
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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 |
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annual installment payments plus interest. Record the current and |
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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 |
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interest accrual for each note payable. |
2012 |
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28Feb |
Paid the first installment and interest for one year on the four year note payable. |
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29 |
Paid off the 9% note plus interest at maturity. |
Requirement
1. Journalize the transactions in Denver’s general journal. Explanations are not required.