Warren Plastic, LLC complete these transactions in year 1 and year 2. Give gener
ID: 2483637 • Letter: W
Question
Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them.
date yr
2/2 1 Purchased equipment for 55,000, signed a 4 month note, 7.5%.
2/28 1 Recorded the month's sales of 175,000, one-sixth cash, five-sixth's credit. Sales tax rate is 4.6%
3/20 1 Sent Feb. sales tax to the state.
6/30 1 Borrowed $153,000 on a long-term note, 8.75% note payable Annual interest is to be paid each year on 6-30, starting yr. 2.
6/2 1 paid off the note dated 2-02-yr 1
10/31 1 bought inventory at a cost of 22,400. Signed a 5 month 4.5% note.
12/31 1 Accrued warranty expense, estimated at 1.5% of 550,000 of sales
12/31 1 Accrued Interest on ALL outstanding notes.
3/31 2 Paid off the inventory note at maturity, including interest.
6/30 2 Paid the annual interest on the 153,000 note.
Explanation / Answer
Equipment 55000 To notes payable 55000 Cash 30508.33333 Accounts receivable 152541.6667 To sales 175000 To sales tax payable 8050 Sales tax payable 8050 To cash 8050 cash 153000 To notes payable 153000 interest payable 1375 notes payable 55000 To cash 56375 purchase 22400 To notes payable 22400 warranty expense 8250 To warranty liability 8250 interest expense 6693.75 To interest payable 6693.75 notes payable 153000 To cash 153000 interest payable 13387.5 To cash 13387.5
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.