module 3 during the past two years the following selected transactions occurred for 498987

Module 3 Assignment:

During the past two years the following selected transactions occurred for Bass Boats Inc.:

Year 1

5-Jan Purchased equipment for $100,000, signing a 9 month, 6% note Payable.

26-Jan Recorded the week’s sales of $75,000, 70% on account and 30% cash. All sales are subject to a 6 1/2% sales tax.

7-Feb Remitted last week’s sales tax to the appropriate government agency.

1-May Borrowed $150,000 on a 6 year, 8% note payable calling for annual interest payments beginning next May 1.

5-Oct Paid off the January 5 note payable.

30-Nov Purchased inventory at a cost of $7,200, signing a 3-month, 8% note payable for that amount.

31-Dec Accrued warranty expense is estimated at 3% of total sales of $1,000,000.

31-Dec Record accrued interest on all outstanding notes payable (make a separate journal entry for each).

Year 2

28-Feb Paid off the 8% inventory note plus interest at maturity

1-May Paid the interest for one year on the long-term note payable.

Requirements:

1. Record the transactions in the journal. Omit explanations.