Reference no: EM131785782

Question - The following transactions of My Dollar store occurred during 2006 and 2007.

2006

Feb 3: Purchased equipment for $10,000, singing 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 lasst 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 April30

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: Accued warranty expense, which is estimated at 3% of total sales of $260,000.

Dec 31: Accrued interest on all outstanding notes payable. Accrue 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 ling term note payable.

Requirements - Record the transactions in the company's journal. Explanations are not required.