Acc280 Financial Accounting: P10-34A The following transaction of Brewton Pharmacies occurred

Acc280 Financial Accounting

The following transaction of Brewton Pharmacies occurred during 2010 and 2011.
Jan 9. Purchased equipment at a cost of $10,000, signing a six-month, 8% note payable for that amount.
Jan 29. Recorded the week's sales of $67,000, three-fourths on credit, and one-fourth for cash. Sales amount are subject to a 6% state sales tax.
Feb 5. Sent the last week's sales tax to the state.
Feb 28. Borrowed $210,000 on a four-year, 9% note payable that calls for $50,000 annual installment payments plus interest. Record the short-term and long-term portions of the note payable in two separate accounts.
Jul 9. Paid the six-month, 8% note, plus interest, at maturity.
Aug 31. Purchased inventory for $6,000, signing a six month, 10% note payable.
Dec 31. Accrued warranty expense, which is estimated at 3% of sales of $601,000.
Dec 31. Accrued interest on all outstanding note 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.
Feb 28. Paid off the 10% note plus interest at maturity.

1. Journalize the transactions in Brewton's general journal. Explanations are not required.
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