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    Journalizing Accounting Entries

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    The following transactions of My Dollar stores occurred during 2006 and 2007:

    Feb 3 - Purchased equipment for $10,000, signing a six-month, 9% note payable
    Feb 28 - Recorded the week's sales of $51,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax.
    Mar 7 - Sent last week's sales tax to the state
    Apr 30 - Borrowed $100,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30
    Aug 3 - Paid the six-month, 9% note at maturity
    Nov 30 - Purchased inventory at a cost of $7,200, signing a three-month, 8% note payable for that amount
    Dec 31 - Accrued a warranty expense, estimated at 3% of total sales of $260,000
    Dec 31 - Accrued interest on all outstanding notes payable. Accrued interest for each note separately.

    Feb 28 - Paid off the 8% inventory note, plus interest, at maturity
    Apr 30 - Paid the interest for one year on the long-term note payable

    Please record the transactions in the company's journal within the Excel sheet attached. Explanations are not required.

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    Solution Summary

    The solution assists with journalizing accounting entries.