Question Help * The folowing transactions of Brewton\'s Marine Supply occurred d
ID: 2590634 • Letter: Q
Question
Question Help * The folowing transactions of Brewton's Marine Supply occurred during 2016 and 2017 (Click the icon to view the transactions) 1. Record the transactions in the company's journal. Explanations are not required (Record debits first then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole doilar) Begin by jounalizing the 2016 transactions, starting with the purchase of equipment on Febnuary 3 Feb 3: Purchased equipment for $15,000, signing a six-month, 11% note payable Journal Entry Date Debit Credit Feb 3, 2016 Feb 28: Recorded the week's sales of S66.000, one-hrd for cash-ar d twoerds on account A sales amounts are ect to a 6% sales tax. Ignore cost of goods Journal Entry Date Feb 28, 2016 Mar 7: Sent last week's sales tax to the state. Journal Entry Mar 7, 2016 Apr 30 Borrowed $210,000 on a four-year, 5% note payable Pal cals for arnu payment of merest each April 30. Journal Entry Date Debit Apr 30, 2016 Aug 3: Pad the six-month, 11% note at maturity Journal Entry Date Aug 3, 2016 Nov 30: Purchased inventory at a cost of $12,000, sging athreemontt 9%note payable for that amount. Journal Entry Choose from any list or enter any number in the input fields and then continue to the next questionExplanation / Answer
1. Journal Entries
Journal Entry
Date
Particulars
Dr. Amount (In $)
Cr. Amount (In $)
Feb 3
Equipment
TO Note Payable (11%)
15,000
15,000
Feb 28
Cash (69,960 / 3)
Accounts Receivable (69,960 x 2 / 3)
TO Sales Revenue (66,000)
TO Sales Tax Payable (66,000 x 6%)
(Being Sales recorded)
23,320
46,640
66,000
3,960
March 7
Sales Tax Payable
TO Cash
3,960
3,960
April 30
Cash
To Note Payable (5%)
210,000
210,000
Aug 3
Note Payable
Interest Expense (15,000 x 11% / 2)
TO Cash
15,000
825
15,825
Nov 30
Inventory / Purchase Account
To Note Payable (9%)
12,000
12,000
Dec 31
Warranty Expense
To Provision for Warranty
(490,000 x 3%)
14,700
14,700
Dec 31
Interest Expense
TO Interest Payable (5%)
(210,000 x 5% / 12 x 8)
7,000
7,000
Dec 31
Interest Expense
TO Interest Payable (9%)
(12,000 x 9% / 12 x 1)
90
90
2017
Feb 28
Note Payable (9%)
Interest Payable (9%)
Interest Expense
(12,000 x 9% /12 x2)
TO Cash
12,000
90
180
12,270
April 30
Interest Payable (5%)
Interest Expense
TO Cash
7,000
3,500
10,500
Date
Particulars
Dr. Amount (In $)
Cr. Amount (In $)
Feb 3
Equipment
TO Note Payable (11%)
15,000
15,000
Feb 28
Cash (69,960 / 3)
Accounts Receivable (69,960 x 2 / 3)
TO Sales Revenue (66,000)
TO Sales Tax Payable (66,000 x 6%)
(Being Sales recorded)
23,320
46,640
66,000
3,960
March 7
Sales Tax Payable
TO Cash
3,960
3,960
April 30
Cash
To Note Payable (5%)
210,000
210,000
Aug 3
Note Payable
Interest Expense (15,000 x 11% / 2)
TO Cash
15,000
825
15,825
Nov 30
Inventory / Purchase Account
To Note Payable (9%)
12,000
12,000
Dec 31
Warranty Expense
To Provision for Warranty
(490,000 x 3%)
14,700
14,700
Dec 31
Interest Expense
TO Interest Payable (5%)
(210,000 x 5% / 12 x 8)
7,000
7,000
Dec 31
Interest Expense
TO Interest Payable (9%)
(12,000 x 9% / 12 x 1)
90
90
2017
Feb 28
Note Payable (9%)
Interest Payable (9%)
Interest Expense
(12,000 x 9% /12 x2)
TO Cash
12,000
90
180
12,270
April 30
Interest Payable (5%)
Interest Expense
TO Cash
7,000
3,500
10,500
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