On January $1.2027,$ the ledger of Lily Company contains these liability accounts.

$\backslash$table$[[$Accounts Payable,$$54\mathrm{.}500$

Journalize the adjusting entries at January $31$ for $(1)$ the outstanding notes payable, and $(2)$ estimated warranty liability, assuming warranty costs are expected to equal $7\%$ of sales of the new product $($Hint Use one$-$third of a month for the Girard Bank note.$)($Credit account titles are automatically indented when amount is entered. Do not indent manually. Record Journal entries in the order presented in the problem.$)$

ate

Account Titles and Explanation

Debit

Credit

Interest Expense

Interest Payable

Warranty Expense

Warranty Liability

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