1. The unadjusted trial balance of Blanton Department Store at December 31, 2017 is below.
Accounts receivable 142,500
Accounts payable 98,500
Short-term notes payable 250,000
Mortgage note payable 1,000,000
Listed below are selected transactions of Blanton Department Store as of the fiscal year end, December 31, 2017.
a. On December 5, the store received $500 from a customer as a refundable deposit for sales that will be made in January.
b. During December, cash sales totaled $798,000. The total includes 5% sales tax that must be remitted to the state of MN by the fifteenth of the following month.
c. On December 10, the store purchased (in cash) three delivery trucks for $120,000. The trucks were purchased in MN. Therefore, a 5% sales tax applies.
d. Blanton determined it will cost $100,000 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years.
Required 1. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any necessary adjusting journal entries at December 31. Ensure you date each entry. 2. Prepare the current and long-term liability sections as at December 31, 2017.