The following transactions of Smooth Sounds Music Company occurred during 2012 and 2013:

Requirement
1. Record the transactions in Smooth Sound€™s journal. Explanations are notrequired.

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2012 Purchased a piano (inventory) for $50,000, signing a six-month, 8% note payable. Borrowed $85,000 on an 8% note payable that calls for annual installment payments of $17,000 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable. Paid the six-month, 8% note at maturity Accrued warranty expense, which is estimated at 2.5% of sales of $196,000 Accrued interest on the outstanding note payable. Mar 3 May 31 Sep 3 Dec 31 31 2013 May 31 Paid the first installment and interest for one year on the outstanding note payable.