Assume that the following transactions of Sleuth Book Store occurred during 2017 and 2018: 2017 Jan. 9
Question:
Assume that the following transactions of Sleuth Book Store occurred during 2017 and 2018:
2017
Jan. 9 Purchased store fixtures at a cost of $50,000, signing an 8%, six-month note for that amount.
June 30 Borrowed $200,000 on a 9% note that calls for annual installment payments of $50,000 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable.
July 9 Paid the six-month, 8% note at maturity.
Dec. 31 Accrued warranty expense, which is estimated at 3% of sales of $600,000.
31 Accrued interest on the outstanding note payable.
2018
June 30 Paid the first installment and interest for one year on the outstanding note payable.
Requirement
Record the transactions in the company's journal. Explanations are not required?
Step by Step Answer:
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin