The following transactions of Denver Marine Supply occurred during 2016 and 2017

Question

The following transactions of Denver 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 joumal entries. Round a More Info 3 Purchased equipment for $9,000, signing a six-month, 4% note payable 28 Recorded the week's sales of $72,000, one-third for cash, and two-thirds on account. Al Feb sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. 7Sent last week's sales tax to the state Mar Apr 30 Bonoved $240 000 on a four-year 7% note payable that calls for annual payment of nterest each April 30 3 Paid the six-month-4% note at maturity. Aug Nov ts are subject to a 5% sales tax Ignore cost of goods sold. 30 Purchased inventory at a cost of $7,200, signing a three-month, 12% note payable for that amount 31 Accrued warranty expense, which is estimated at 3 0% of total sales of $580,000. interest on all outstanding notes payable. Accrued interest for each note Dec 31 separately Feb Apr 28 Paid of the 12% inventory note, plus interest at maturity 30Paid the interest for one year on the long-term note pay Print Done

Explanation / Answer

Date Account Title Debit Credit 2016 3-Feb Equipment 9000 4% Note payable 9000 28-Feb Cash 24000 Accounts Receivables 48000 Sales 68400 Sales tax payable 3600 7-Mar Sales tax payable 3600 Cash 3600 30-Apr Cash 240000 7% Long-term Note payable 240000 3-Aug 4% Note payable 9000 Interest expense(9000*4%*6/12) 180 Cash 9180 30-Nov Inventory 7200 12% Note payable 7200 31-Dec Warranty expense(580000*3%) 17400 Warranty liability 17400 Interest expense 11200 Interest payable 11200 (240000*7%*8/12) Interest expense 72 Interest payable 72 (7200*12%*1/12) 2017 28-Feb 12% Note payable 7200 Interest payable 72 Interest expense 144 Cash 7416 30-Apr Interest payable 11200 Interest expense 5600 Cash 16800

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