The following transactions of Denver Pharmacies occurred during 2011 and 2012:
Jan 9 Purchased computer equipment at a cost of $9,000, signing a six-month, 6% note payable for that amount.
29 Recorded the week's sales of $64,000, three-fourths on credit, and one-fourth for cash. Sales amounts are subject to a 6% state sales tax.
Feb 5 Sent the last week's sales tax to the state.
28 Borrowed $204,000 on a four-year, 10% note payable that calls for $51,000 annual installment payments plus interest. Record the current and long-term portions of the note payable in two separate accounts.
Jul 9 Paid the six-month, 6% note, plus interest, at maturity.
Aug 31 Purchased inventory for $12,000, signing a six-month, 9% note payable.
Dec 31 Accrued warranty expense, which is estimated at 2% of sales of $603,000.
31 Accrued interest on all outstanding notes payable. Make a separate interest accrual for each note payable.
Feb 28 Paid the first installment and interest for one year on the four-year note payable.
29 Paid off the 9% note plus interest at maturity.
1.Journalize the transactions in Denver's general journal. Explanations are not required.
Your tutorial is attached in excel with instructional comments to help you follow the interest expense, interest payable and repayment entries.