| | Module 2 : |
| | 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. |
| | 1-Oct | Issued $100,000 in 5 year, 10%, semiannual bonds payable. The bonds were issued at 104 |
| | 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 (assume the sales were already recorded). |
| | 31-Dec | Record accrued interest on all outstanding notes and bonds payable (make a separate journal entry for each). |
| | Year 2 |
| | 28-Feb | Paid off the 8% inventory note plus interest at maturity |
| | 1-Apr | Paid the interest due on the semi-annual bonds |
| | 1-May | Paid the interest for one year on the long-term note payable. |
| | Requirements: |
| | 1 | Record the transactions in the journal. Omit explanations. Add formulas in cells where interest and accruals are recorded to reflect how you are calculating these numbers. |
| | | Journal |
| | | Date | | Accounts | | | | | Post. Ref | Debit | | Credit |
| | | Year 1 |
| | | Year 2 |
bkaneh
A141Mod_02_Assignment_Template.xlsx
