Problem - The following transactions of 5 String Music Company occurred during 2013 and 2014:
2013
Mar 3 Apr 30
Sept 3 Dec 31
Dec 31
2014
Apr 30
Required:
Purchased a Steinway piano (inventory) for $43,000, signing a six-month, 10% note
Borrowed $53,000 on a 11% note payable that calls for annual instalment payments of $26,500 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable
Paid the six-month, 10% note at maturity
Accrued warranty expense, which is estimated at 4% of sales of $190,000
Accrued interest on the outstanding note payable
Paid the first instalment plus interest for on year on the outstanding note payable
Record the general journal entries for 5 String Music.