HORNGREN'S FIN.+...V.1(LL)-W/ACCESS >C<
16th Edition
ISBN: 9781323169360
Author: MILLER-NOBLES
Publisher: PEARSON C
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Textbook Question
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.
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On January 1, 2015, the ledger of Accardo Company contains the following liability accounts.
Accounts Payable
$56,350
Sales Taxes Payable
8,320
Unearned Service Revenue
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During January, the following selected transactions occurred.
Jan. 5
Sold merchandise for cash totaling $15,012, which includes 8% sales taxes.
12
Performed services for customers who had made advance payments of $11,330. (Credit Service Revenue.)
14
Paid state revenue department for sales taxes collected in December 2014 ($8,320).
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Sold 850 units of a new product on credit at $50 per unit, plus 8% sales tax.
21
Borrowed $31,500 from Girard Bank on a 3-month, 8%, $31,500 note.
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Sold merchandise for cash totaling $9,504, which includes 8% sales taxes.
Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.) (Credit account titles are automatically indented when amount is entered. Do…
Jan. 9, 2023
Purchased computer equipment at a cost of $11,000, signing a six-month, 7% note
payable for that amount.
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.
Jan. 29, 2023
Feb. 5, 2023
Sent the last week's sales tax to the state.
Jul. 9, 2023
Paid the six-month, 7% note, plus interest, at maturity.
Aug. 31, 2023
Purchased merchandise inventory for $3,000, signing a six-month, 11% note
payable. The company uses the perpetual inventory system.
Accrued warranty expense, which is estimated at 2% of sales of $602,000.
Dec. 31, 2023
Dec. 31, 2023
Accrued interest on all outstanding notes payable.
Feb. 28, 2024
Paid the six-month 11% note, plus interest, at maturity.
On January 1, 2015, the ledger of Accardo Company contains the following liability accounts.
Accounts Payable
$56,350
Sales Taxes Payable
8,320
Unearned Service Revenue
15,930
During January, the following selected transactions occurred.
Jan. 5
Sold merchandise for cash totaling $15,012, which includes 8% sales taxes.
12
Performed services for customers who had made advance payments of $11,330. (Credit Service Revenue.)
14
Paid state revenue department for sales taxes collected in December 2014 ($8,320).
20
Sold 850 units of a new product on credit at $50 per unit, plus 8% sales tax.
21
Borrowed $31,500 from Girard Bank on a 3-month, 8%, $31,500 note.
25
Sold merchandise for cash totaling $9,504, which includes 8% sales taxes.
Date
Account Titles and Explanation
Debit
Credit
Jan. 5
Jan. 12…
Chapter 11 Solutions
HORNGREN'S FIN.+...V.1(LL)-W/ACCESS >C<
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QCCh. 11 - Prob. 10QC
Ch. 11 - Prob. 1RQCh. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Determining current versus long-term liabilities...Ch. 11 - Prob. 11.2SECh. 11 - Prob. 11.3SECh. 11 - Accounting for a note payable On December 31,...Ch. 11 - Prob. 11.5SECh. 11 - Prob. 11.6SECh. 11 - Computing payroll amounts considering FICA tax...Ch. 11 - Prob. 11.8SECh. 11 - Prob. 11.9SECh. 11 - Prob. 11.10SECh. 11 - Prob. 11.11SECh. 11 - Accounting treatment for contingencies Fernandez...Ch. 11 - Prob. 11.13SECh. 11 - Recording sales tax Consider the following...Ch. 11 - Prob. 11.15ECh. 11 - Recording and reporting current liabilities...Ch. 11 - Journalizing current liabilities Erik OHern...Ch. 11 - Prob. 11.18ECh. 11 - Recording employer payroll taxes and employee...Ch. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25APCh. 11 - Prob. 11.26APCh. 11 - Journalizing liability transactions T he following...Ch. 11 - Journalizing liability transactions The following...Ch. 11 - Prob. 11.29APCh. 11 - Prob. 11.30BPCh. 11 - Prob. 11.31BPCh. 11 - Prob. 11.32BPCh. 11 - Prob. 11.33BPCh. 11 - Prob. 11.34BPCh. 11 - Prob. 11.35CPCh. 11 - Prob. 11.1CTDCCh. 11 - Sell-Soft is the defendant in numerous lawsuits...Ch. 11 - Prob. 11.1CTEICh. 11 - Derails about a company's liabilities appear in a...Ch. 11 - Prob. 11.1CTCA
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