journalizing liability transactions the following transactions of plymouth pharmacie 643883

2011

9Jan

Purchased computer equipment at a cost of $7,000, signing a six month,

9% note payable for that amount.

29

Recorded the week’s sales of $67,000, three fourths on credit, and

one fourth for cash. Sales amounts are subject to a 6% state sales tax.

5Feb

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

28

Borrowed $210,000 on a four year, 8% note payable that calls for $52,500

annual installment payments plus interest. Record the current and

long term portions of the note payable in two separate accounts.

9Jul

Paid the six month, 9% note, plus interest, at maturity.

31Aug

Purchased inventory for $6,000, signing a six month, 11% note payable.

31Dec

Accrued warranty expense, which is estimated at 4% of sales of $608,000.

31

Accrued interest on all outstanding notes payable. Make a separate

interest accrual for each note payable.

2012

28Feb

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

29

Paid off the 11% note plus interest at maturity.