(Learning Objective 1: Recording liability related transactions) Assume that the following transactions of Mardell Book Stores occurred during 20X8 and 20X9.
Required
Record the transactions in the company’s journal. Explanations are not required.
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20X8 |
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Jan. 9 |
Purchased store fixtures at a cost of $50,000, signing an 8%, 6 month note payable for that amount. |
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June 30 |
Borrowed $200,000 on a 9% note payable that calls for annual installment payments of $50,000 principal plus interest. Record the short term note payable in a separate account from the longterm note payable. |
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July 9 |
Paid the 6 month, 8% note at maturity. |
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Dec. 31 |
Accrued warranty expense, which is estimated at 3% of sales of $600,000. |
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31 |
Accrued interest on the outstanding note payable. |
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20X9 |
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June 30 |
Paid the first installment and interest for 1 year on the outstanding note payable. |