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2017 Jan. 9 Purcliased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $68,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 8% note, plus interest, at raturity. Purchased merchandise inventory for $3,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Aug. 31 Dec. 31 Arcrued warranty expense, which is estimated at 2% of sales of $G09,090. Accrued interest on all outstanding notes payable. 31 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity

2017 Jan. 9 Purcliased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $68,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 8% note, plus interest, at raturity. Purchased merchandise inventory for $3,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Aug. 31 Dec. 31 Arcrued warranty expense, which is estimated at 2% of sales of $G09,090. Accrued interest on all outstanding notes payable. 31 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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Journalizing liability transactions

The following transactions of Philadelphia Pharmacies occurred during 2017 and 2018;

Journalize the transactions in Philadelphia’s general journal. Explanations are not required.

 

2017 Jan. 9 Purcliased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $68,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 8% note, plus interest, at raturity. Purchased merchandise inventory for $3,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Aug. 31 Dec. 31 Arcrued warranty expense, which is estimated at 2% of sales of $G09,090. Accrued interest on all outstanding notes payable. 31 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity
Transcribed Image Text:2017 Jan. 9 Purcliased computer equipment at a cost of $7,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $68,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 8% note, plus interest, at raturity. Purchased merchandise inventory for $3,000, signing a six-month, 10% note payable. The company uses a perpetual inventory system. Aug. 31 Dec. 31 Arcrued warranty expense, which is estimated at 2% of sales of $G09,090. Accrued interest on all outstanding notes payable. 31 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity
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