Question: Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them. Use excel and show calculations.
date yr
2/17 1 Purchased equipment for 47,000, signed a 3 month note, 9.25%.
2/28 1 Recorded the month's sales of 205,000, one-third cash, two-third's credit.
Sales tax rate is 5.1%
3/20 1 Sent Feb. sales tax to the state.
5/17 1 paid off the note dated 2-17-yr 1
5/31 1 Borrowed $185,000 on a long-term note, 7.65% note payable
Annual interest is to be paid each year on 5-30, starting yr. 2.
9/30 1 bought inventory at a cost of 26,300. Signed a 5 month 5.5% note.
12/31 1 Accrued warranty expense, estimated at 1.75% of 625,000 of sales
12/31 1 Accrued Interest on ALL outstanding notes.
2/28 2 Paid off the inventory note at maturity, including interest.
5/30 2 Paid the annual interest on the 185,000 note.