sled: Exam III$-$Summer$2024$

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$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Walnut Enterprises for Year $1,$ its first year of operations:

On April $1,$ Year $1,$ borrowed $$50,000$ cash by issuing a note payable. The note had a $6$ percent annual interest rate and a one$-$year term. The principal and interest are due at maturity $($on April $1,$ Year $2).$

Received $$130,000$ cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of $6$ percent.

Paid $$62,000$ cash for other operating expenses during the year.

Paid $$6,600$ of the sales tax collected in event $2$ to the state government. The balance of the sales tax collected during Year $1$ is not due until Year $2.$

On December $31,$ Year $1,$ made the adjusting entry to reflect accrued interest on the note $($from event $1).$

Required

a$.$ Record the Year $1$ transactions in general journal form.

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Journal entry worksheet

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A

B

C

D

E

Received $$50,000$ cash fram the issue of a short$-$term note with a $6$ percent

interest rate and a one$-$year maturity. The note was made on April $1,$ year $1.$

Record the transaction.

Note: Enter debits before credits.