Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following transactions of San Francisco Marine Supply occurred during 2018 and 2019: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in the company's journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar.) Begin by journalizing the 2018 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for S20,000, signing a six-month, 6% note payable. Journal Entry Date Accounts Debit Credit Feb 3, 2018 Feb 28: Recorded the week's sales of $55,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Feb 28. 2018

The following transactions of San Francisco Marine Supply occurred during 2018 and 2019: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in the company's journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar.) Begin by journalizing the 2018 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for S20,000, signing a six-month, 6% note payable. Journal Entry Date Accounts Debit Credit Feb 3, 2018 Feb 28: Recorded the week's sales of $55,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Feb 28. 2018

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
The following transactions of San Francisco Marine Supply occurred during 2018 and 2019: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in the company's journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar.) ..... Begin by journalizing the 2018 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for $20,000, signing a six-month, 6% note payable. Journal Entry Date Accounts Debit Credit Feb 3, 2018 Feb 28: Recorded the week's sales of $55,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Feb 28, 2018 More Info 2018 Feb 3 Purchased equipment for $20,000, signing a six-month, 6% note payable. Mar 7: Sent last week's sales tax to the state. 28 Recorded the week's sales of $55,000, one-third for cash, and two-thirds account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Sent last week's sales tax to the state Journal Entry Mar 7 Date Accounts Debit Credit Apr 30 Borrowed $190,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30. Paid the six-month, 6% note at maturity. Mar 7, 2018 Aug 3 Nov 30 Purchased inventory at a cost of $8,400, signing a three-month, 5% note payable for that amount. Dec 31 Accrued warranty expense, which is estimated at 6.0% of total sales of $580,000. 31 Apr 30: Borrowed $190,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30. Accrued interest on all outstanding notes payable. Accrued interest for each note separately. 2019 Journal Entry Feb 28 Paid off the 5% inventory note, plus interest, at maturity. Date Accounts Debit Credit Apr 30 Paid the interest for one year on the long-term note payable. Apr 30, 2018 Print Done Aug 3: Paid the six-month, 6% note at maturity Journal Entry Date Accounts Debit Credit Aug 3, 2018
Transcribed Image Text:The following transactions of San Francisco Marine Supply occurred during 2018 and 2019: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in the company's journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar.) ..... Begin by journalizing the 2018 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for $20,000, signing a six-month, 6% note payable. Journal Entry Date Accounts Debit Credit Feb 3, 2018 Feb 28: Recorded the week's sales of $55,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Feb 28, 2018 More Info 2018 Feb 3 Purchased equipment for $20,000, signing a six-month, 6% note payable. Mar 7: Sent last week's sales tax to the state. 28 Recorded the week's sales of $55,000, one-third for cash, and two-thirds account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Sent last week's sales tax to the state Journal Entry Mar 7 Date Accounts Debit Credit Apr 30 Borrowed $190,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30. Paid the six-month, 6% note at maturity. Mar 7, 2018 Aug 3 Nov 30 Purchased inventory at a cost of $8,400, signing a three-month, 5% note payable for that amount. Dec 31 Accrued warranty expense, which is estimated at 6.0% of total sales of $580,000. 31 Apr 30: Borrowed $190,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30. Accrued interest on all outstanding notes payable. Accrued interest for each note separately. 2019 Journal Entry Feb 28 Paid off the 5% inventory note, plus interest, at maturity. Date Accounts Debit Credit Apr 30 Paid the interest for one year on the long-term note payable. Apr 30, 2018 Print Done Aug 3: Paid the six-month, 6% note at maturity Journal Entry Date Accounts Debit Credit Aug 3, 2018
Nov 30: Purchased inventory at a cost of $8,400, signing a three-month, 5% note payable for that amount. Journal Entry Date Accounts Debit Credit Nov 30, 2018 Dec 31: Accrued warranty expense, which is estimated at 6.0% of total sales of $580,000. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Dec 31: Accrued interest on all outstanding notes payable. Accrued interest for each note separately. Start by accruing interest on the $190,000, four-year, 0% note from April 30. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Now accrue interest at December 31 on the $8,400, three-month, 5% note from November 30. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Next, record the 2019 transactions, beginning with repayment of the 5% inventory note. Feb 28: Paid off the 5% inventory note, plus interest, at maturity. Journal Entry Date Accounts Debit Credit Feb 28, 2019 Apr 30: Paid the interest for one year on the long-term note payable. Journal Entry Date Accounts Debit Credit Apr 30, 2019
Transcribed Image Text:Nov 30: Purchased inventory at a cost of $8,400, signing a three-month, 5% note payable for that amount. Journal Entry Date Accounts Debit Credit Nov 30, 2018 Dec 31: Accrued warranty expense, which is estimated at 6.0% of total sales of $580,000. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Dec 31: Accrued interest on all outstanding notes payable. Accrued interest for each note separately. Start by accruing interest on the $190,000, four-year, 0% note from April 30. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Now accrue interest at December 31 on the $8,400, three-month, 5% note from November 30. Journal Entry Date Accounts Debit Credit Dec 31, 2018 Next, record the 2019 transactions, beginning with repayment of the 5% inventory note. Feb 28: Paid off the 5% inventory note, plus interest, at maturity. Journal Entry Date Accounts Debit Credit Feb 28, 2019 Apr 30: Paid the interest for one year on the long-term note payable. Journal Entry Date Accounts Debit Credit Apr 30, 2019
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS