Question

The following transactions of Seattle Pharmacies occurred during 2017 and 2018: (Click the icon to view the transactions.) Journalize the transactions in Seattle's general journal. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Jan. 9, 2017: Purchased computer equipment at a cost of $9,000, signing a six-month, 8% note payable for that amount. Date Accounts Debit Credit Jan. 9 * More Info 2017 Jan. 9Purchased computer equipment at a cost of $9,000, signing a six-month, 8% note payable for that amount. 29 Recorded the week's sales of $69,000, 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. 9Paid the six-month, 8% note, plus interest, at maturity. Aug. 31 Purchased merchandise inventory for $6,000, signing a six-month, 10% note payable. The company uses the perpetual inventory system. Dec. 31 Accrued warranty expense, which is estimated at 4% of sales of $603,000. 31 Accrued interest on all outstanding notes payable. 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity. Print Done

Answer 1

Journal entries

Date	account and explanation	Debit	Credit
Jan 9	Equipment	9000
	Notes payable		9000
Jan 29	Account receivable (73140*3/4)	54855
	Cash	18285
	Sales revenue		69000
	Sales tax payable (69000*6%)		4140
Feb 5	Sales tax payable	4140
	Cash		4140
Jul 9	Notes payable	9000
	Interest expense (9000*8%*6/12)	360
	Cash		9360
Aug 31	Inventory	6000
	Notes payable		6000
Dec 31	Warranty expense (603000*4%)	24120
	Warranty payable		24120
Dec 31	Interest expense (6000*10%*4/12)	200
	Interest payable		200
Feb 28	Notes payable	6000
	Interest payable	200
	Interest expense	100
	Cash		6300