Requirement
1. Journalize the transactions in Denver's general journal.
| 2010 |
|
|
| Jan |
9 |
Purchased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. |
|
29 |
Recorded the week's sales of $62,000, three-fourths on credit, and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. |
| Feb |
5 |
Sent the last week's sales tax to the state. |
|
28 |
Borrowed $202,000 on a four-year, 9% note payable that calls for $50,500 annual installment payments plus interest. Record the short-term and long-term portions of the note payable in two separate accounts. |
| July |
9 |
Paid the six-month, 8% note, plus interest, at maturity. |
| Aug |
31 |
Purchased inventory for $6,000, signing a six-month, 10% note payable. |
| Dec |
31 |
Accrued warranty expense, which is estimated at 3% of sales of $605,000. |
|
31 |
Accrued interest on all outstanding notes payable. Make a separate interest accrual for each note payable. |
| 2011 |
|
|
| Feb |
28 |
Paid the first installment and interest for one year on the four-year note payable. |
|
28 |
Paid off the 10% note plus interest at maturity.
|