ACC
205 Week 5 P10-15A The following
transactions of Denver Pharmacies occurred during 2011 and 2012
ACC 205 Week 5Accounting, 9e
P10-15A Journalizing liability transactions LO 1, 2 [30-40 minutes]
P10-15A The following transactions of Denver Pharmacies occurred during 2011 and 2012
Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
P10-15A The following transactions of Denver Pharmacies occurred during 2011 and 2012:
2011
Jan 9 Purchased
computer equipment at a cost of $9,000, signing a six-month, 6% note payable
for that amount.
29 Recorded the week’s
sales of $64,000, three-fourths on credit, and one-fourth for cash. Sales
amounts are subject to a 6% state sales tax.
Feb 5 Sent the last
week’s sales tax to the state.
28 Borrowed $204,000
on a four-year, 10% note payable that calls for $51,000 annual installment
payments plus interest.
Record the current and long-term portions of the note payable in two separate accounts.
Jul 9 Paid the
six-month, 6% note, plus interest, at maturity.
Aug 31 Purchased
inventory for $12,000, signing a six-month, 9% note payable.
Dec 31 Accrued warranty
expense, which is estimated at 2% of sales of $603,000.
Accrued interest on all outstanding notes payable. Make a separate interest accrual for each note payable.
2012
Feb 28 Paid the first installment
and interest for one year on the four-year note payable.
29 Paid off the 9% note
plus interest at maturity.
Requirements 1. Journalize the transactions in Denver’s general journal. Explanations are not required.
SOLUTION PREVIEW
P
10-15A
Req. 1
Journal
Entry
DATE
|
ACCOUNTS
AND EXPLANATIONS
|
POST.
REF.
|
DEBIT
|
CREDIT
|
|
2011
|
|||||
Jan
|
9
|
Computer
equipment
|
9,000
|
||
Short-term notes payable
|
9,000
|
||||
Jan
|
29
|
Cash
($64,000 × 1/4 × 1.06)
|
16,960
|
||
File name: ACC-205-Week-5-P10-15A-Denver-Pharmacies.doc File type: application/msword Price: $6
