Posted: February 12th, 2023

Macomb Community College ACCT 1080 Account Titles and Explanation Equipment Notes payable

Account Titles and ExplanationEquipmentNotes payableTo record purchase of equipmentCashAccounts receivableSalesSales tax liabilityTo record monthly sales cash and creditSales tax liabilityP. R.Debit55,00055,00030,508152,542175,0008,05080,500CashTo record taxes pd to the state6/30Cash80,500153,000Note payableTo record loan(tern 8.75;interest due yr 2)6/2Notes payableInterst expense153,00055,0001,375CashPd off note date 2-210/31Inventory53,62522,400Notes payableTo record inventory purchased12/31Warranty expense22,4008,250Accrued warranty expenseTo record warranty cost12/31Interest expense8,25013,808Interest payableTo record accured interest12/31Interest expense13,8081,008Interest payableTo record accured interest3/31Notes payableInterest payable1,00822,4001,008CashTo record note maturity6/30Interest payableCashTo record interest pad on noteCredit23,40813,38813,388Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them.date yr2/2 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 payableAnnual interest is to be paid each year on 6-30, starting yr. 2.6/2 1 paid off the note dated 2-02-yr 110/31 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 sales12/31 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.

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