The following transactions of My Dollar stores occurred during 2006 and 2007:
**2006**
Feb 3 – Purchased equipment for $10,000, signing a six-month, 9% note payable
Feb 28 – Recorded the week’s sales of $51,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax.
Mar 7 – Sent last week’s sales tax to the state
Apr 30 – Borrowed $100,000 on a four-year, 9% note payable that calls for annual payment of interest each April 30
Aug 3 – Paid the six-month, 9% note at maturity
Nov 30 – Purchased inventory at a cost of $7,200, signing a three-month, 8% note payable for that amount
Dec 31 – Accrued a warranty expense, estimated at 3% of total sales of $260,000
Dec 31 – Accrued interest on all outstanding notes payable. Accrued interest for each note separately.
**2007**
Feb 28 – Paid off the 8% inventory note, plus interest, at maturity
Apr 30 – Paid the interest for one year on the long-term note payable
TASK:
Please record the transactions in the company’s journal within the Excel sheet attached. Explanations are not required.
