Exercise $7-25($Static$)$ Transaction analysis$$various accounts LO $7-1,7-2,7-5,7-8,7-9$

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A company incurred the following transactions:

Income tax expense of $$1,100$ for the current period is accrued. Of the accrual, $$300$ represents deferred tax liabilities.

Bonds payable with a face amount of $$12,000$ are issued at a price of $97.$

Of the proceeds from the bonds in part b$,$ $$16,000$ is used to purchase land for future expansion.

Because of warranty claims, finished goods inventory costing $$266$ is sent to customers to replace defective products.

A three$-$month, $7\%$ note payable with a face amount of $$40,000$ was signed. The bank made the loan on a discount basis.

The next installment of a long$-$term serial bond requiring an annual principal repayment of $$50,000$ will become due within the current year.

Exercise $7-25($Static$)$ Part $2$

a$-2.$ Record the journal entries to show each transaction or adjustment.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.