Practical Question 1: Journalize the following liability transactions

a. Sept 30 Accrued vacation pay for the third quarter of the year is $40,000 b. Oct 10 Builders Hardware made sales of $483,000. Builders received cash for 30% of the sales and accepted notes receivable for the remainder.

c. Oct 10 Builders expect warranty costs to equal 6% of sales. d. Nov 22 Warranty claims satisfied totaled $19,000 of which $12,000 were paid in cash and $7,000 in parts replacement.

e. Dec 31 Employees pension for the year total $40,000 which was fully funded.