The following transactions of Plymouth Pharmacies occurred during 2017 and 2018: Jan 9 Purchased computer equipment at a cost of $12,000, signing a six-month, 9% note payable for that amount.
Jan. 29 Recorded the week's sales of $63,000, three-fourths on credit and one fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold.
Feb 5 Sent the last week's sales tax to the state.
Jul 7 Paid the six-month, 9% note, plus interest, at maturity.
Aug 31 Purchased merchandise inventory for $9,000, signing a six-month, 10% note payable. The company uses the perpetual inventory system.
Dec 31 Accrued warranty expense, which is estimated at 4% of sales of $609,000.
31 Accrued interest on all outstanding notes payable.

2018
Feb 28 Paid the six-month 10% note, plus interest, at maturity.

Required:
Journalize the transactions in Plymouth's general journal. Round to the nearest dollar

Answer and Explanation:

The journal entries are shown below:

On Jan. 9

Computer Equipment $12,000  

         To Short-term Notes Payable $12,000

(Being computer equipment is purchased)

On Jan. 29

Cash ($63,000 × 1 ÷ 4 × 1.06) $16,695  

Accounts Receivable ($63,000 × 3 ÷ 4 × 1.06) $50,085  

        To Sales Revenue $63,000

(Being sales revenue is recorded)

On Feb. 5

Sales Tax Payable $3,780  

         To Cash $3,780

(Being cash paid is recorded)

On Jul. 9

Short-term Notes Payable $12,000  

Interest Expense ($12,000 × 9% × 6 ÷ 12) $540  

          To Cash ($12,000+$540) $12,540

(Being cash is paid)

On Aug. 31

Inventory $9,000  

         To Short-term Notes Payable $9,000

(Being inventory is recorded)

On Dec. 31

Warranty Expense ($609,000 × 4%) $24,360  

          To Estimated Warranty Payable $24,360

(Being warranty expense is recorded)

On Dec. 31

Interest Expense ($9,000 × 10% × 4 ÷ 12) $300  

              To Interest Payable $300

(Being interest expense is recorded)

On Feb. 28

Short-term Notes Payable $9,000  

Interest Expense ($9,000 × 10% × 2 ÷ 12) $150  

Interest Payable ($9,000 × 10% × 4 ÷ 12) $300  

           To Cash ($9,000+$300+$150)  $9,450

(Being cash is recorded)

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

answer; private store;