Chapter 11, Problem 11.27AP

Journalizing liability transactions

T he following transactions of Houston Pharmacies occurred during 2015 and 2016:

2015
Jan. 9	Purchased computer equipment at a cost of $13,000, signing a six-month, 9% note payable for that amount.
29	Recorded the week's sales of $66,000, 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, 9% note, plus interest, at maturity.
Aug. 31	Purchased merchandise inventory for $6,000, signing a six-month, 10% note payable. The company uses the perpetual inventory system.
Dec. 31	Accrued warranty expense, which is estimated at 3% of sales of $601,000.
31	Accrued interest on all outstanding notes payable.
2016
Feb.	29 Paid the six-month 10% not e, plus interest, at maturity.

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