Question

The following transactions of Concerto Music Company occurred during 2014 and 2015:
2014
Mar 3 Purchased a piano (inventory) for $72,000, signing a six-month, 4% note payable.
May 31 Borrowed $85,000 on a 5% note payable that calls for annual installment payments of $17,000 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, 4% note at maturity.
Dec 31 Accrued warranty expense, which is estimated at 2% of sales of $214,000.
31 Accrued interest on the outstanding note payable.
2015
May 31 Paid the first installment and interest for one year on the outstanding note payable.

Requirement
1. Record the transactions in Concerto Music Company’s journal. Explanations are not required.



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  • CreatedJuly 25, 2014
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