The following transacstions of Signature Music Company occurred during 2016 and 2017:
2016
Mar 3 Purchased a piano (inventory) for $70,000, signing a six-month, 10% note payable.
May 31 Borrowed $85,000 on a 5% note payable that calls for annual installment payments of $14,167 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable.
Sep 3 Paid the six-month, 10% note at maturity.
Dec 31 Accrued warranty expense, which is estimated at 3% of sales of $193,000.
31 Accrued interest on the outstanding note payable.
2017
May 31 Paid the first installment and interest for one year on the outstanding note payable.
Requirement
1. Record the transactions in Signature Music Company's journal. Explanations are not required.