Journalize the following Jan 9: purchased computer equipment at a cost of 16,000
ID: 2429602 • Letter: J
Question
Journalize the following
Jan 9: purchased computer equipment at a cost of 16,000 signing a six month &% note payable for that month
Jan 29: record the weeks sales of 60,000 three fourths on credit and one fourth for cash. sales ammounts are subjected to a 6% state sales tax. ignore cost of goods sold.
Feb 5: sent the last weeks sales tax to the state
jul 9: paid the six month 7% note plus interest
Aug 31: purchased merchandise inventory for 12000 signing a six month 11% note payable. The company used te perpetual system
dec 31 accured warranty expense which is estimated at 3% of sales 607,000
dec 31accured interest on all outstanding notes payable
feb 28 paid the six month 11% note plus interest maturity
Explanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. 9-Jan Equipment 16,000.00 Note Payable 16,000.00 (To record the purchase of computer equiment) 29-Jan Cash 15,900.00 $63,600 x 1/4 Accounts Receivable 47,700.00 $63,600 x 3/4 Sales 60,000.00 State Sales Tax Payable 3,600.00 $60,000 x 6% (To record the sales revenue) 5-Feb State Sales Tax Payable 3,600.00 Cash 3,600.00 (To record the cash paid) 9-Jul Notes Payable 16,000.00 Interest Expense 560.00 $16,000 X 7% X 6/12 Cash 16,560.00 (To record the note paid) 31-Aug Merchandise Inventory 12,000.00 Notes Payable 12,000.00 (To record the purchase of inventory) 31-Dec Warranty Expenses 18,210.00 $607,000 X 3% Warranty Payable 18,210.00 (To record the warranty expenses) 31-Dec Interest Expense 440.00 $12,000 X 11% X 4/12 Interest Payable 440.00 (To record the interest accrued on note) 28-Feb Notes Payable 12,000.00 Interest Expense 220.00 $12,000 X 11% X 2/12 Interest Payable 440.00 Cash 12,660.00 (To record the note paid)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.