Module 3 Assignment:
During the past two years the following selected transactions occurred for Bass Boats Inc.:
Year 1
5-Jan Purchased equipment for $100,000, signing a 9 month, 6% note Payable.
26-Jan Recorded the week’s sales of $75,000, 70% on account and 30% cash. All sales are subject to a 6 1/2% sales tax.
7-Feb Remitted last week’s sales tax to the appropriate government agency.
1-May Borrowed $150,000 on a 6 year, 8% note payable calling for annual interest payments beginning next May 1.
5-Oct Paid off the January 5 note payable.
30-Nov Purchased inventory at a cost of $7,200, signing a 3-month, 8% note payable for that amount.
31-Dec Accrued warranty expense is estimated at 3% of total sales of $1,000,000.
31-Dec Record accrued interest on all outstanding notes payable (make a separate journal entry for each).
Year 2
28-Feb Paid off the 8% inventory note plus interest at maturity
1-May Paid the interest for one year on the long-term note payable.
Requirements:
1. Record the transactions in the journal. Omit explanations.