journalize the transactions in denver rsquo s general journal explanations are not r 570025

2011

Jan

9

Purchased computer equipment at a cost of $9,000, signing a six month, 6% note payable for that amount.

29

Recorded the week’s sales of $64,000, three fourths on credit, and one fourth for cash. Sales amounts are subject to a 6% state sales tax.

2012

Feb

5

Sent the last week’s sales tax to the state.

28

Borrowed $204,000 on a four year, 10% note payable that calls for $51,000 annual installment payments plus interest. Record the current and long term portions of the note payable in two separate accounts.

Jul

9

Paid the six month, 6% note, plus interest, at maturity.

Aug

31

Purchased inventory for $12,000, signing a six month, 9% note payable.

Dec

31

Accrued warranty expense, which is estimated at 2% of sales of $603,000.

31

Accrued interest on all outstanding notes payable. Make a separate interest accrual for each note payable.

Feb

28

Paid the first installment and interest for one year on the four year note payable.

29

Paid off the 9% note plus interest at maturity.