Module 3 During the past two years the following selected transactions occurred for Bass Boats Inc.:

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.