Warren plastic llc complete these transactions in year 1


Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them.

date yr

2/12 1 Purchased equipment for 35,000, signed a 7 month note, 6.5%.

2/28 1 Recorded the month's sales of 325,000, one-fourth cash, three-fourth's credit.

Sales tax rate is 6.75%

3/20 1 Sent Feb. sales tax to the state.

5/31 1 Borrowed $305,000 on a long-term note, 8% note payable

Annual interest is to be paid each year on 5-31, starting yr. 2.

9/12 1 paid off the note dated 2-12-yr 1

10/31 1 bought inventory at a cost of 9,500. Signed a 4 month 8.5% note.

12/31 1 Accrued warranty expense, estimated at 4% of 250,000 of sales

12/31 1 Accrued Interest on ALL outstanding notes.

2/28 2 Paid off the inventory note at maturity, including interest.

5/31 2 Paid the annual interest on the 305,000 note

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Financial Accounting: Warren plastic llc complete these transactions in year 1
Reference No:- TGS01670476

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