| Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them. | |||||||||||
| date | yr | ||||||||||
| 2/2 | 1 | Purchased equipment for 55,000, signed a 4 month note, 7.5%. | |||||||||
| 2/28 | 1 | Recorded the month’s sales of 175,000, one sixth cash, five sixth’s credit. | |||||||||
| Sales tax rate is 4.6% | |||||||||||
| 3/20 | 1 | Sent Feb. sales tax to the state. | |||||||||
| 6/30 | 1 | Borrowed $153,000 on a long term note, 8.75% note payable | |||||||||
| Annual interest is to be paid each year on 6 30, starting yr. 2. | |||||||||||
| 6/2 | 1 | paid off the note dated 2 02 yr 1 | |||||||||
| 10/31 | 1 | bought inventory at a cost of 22,400. Signed a 5 month 4.5% note. | |||||||||
| 12/31 | 1 | Accrued warranty expense, estimated at 1.5% of 550,000 of sales | |||||||||
| 12/31 | 1 | Accrued Interest on ALL outstanding notes. | |||||||||
| 3/31 | 2 | Paid off the inventory note at maturity, including interest. | |||||||||
| 6/30 | 2 | Paid the annual interest on the 153,000 note. | |||||||||
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