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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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