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The following transactions of Soft Sounds Music Company occurred during 2010 and 2011: 2010 Mar 3 Purchased a piano inventory for $30000 signing a six-month 10% note payable May 31 Borrowed

The following transactions of Soft Sounds Music Company occurred during 2010 and 2011: 2010 Mar 3 Purchased a piano (inventory) for $30,000, signing a six-month, 10% note payable. May 31 Borrowed $75,000 on a 6% note payable that calls for annual installment payments of $15,000 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable. Sep 3 Paid the six-month, 10% note at maturity. Dec 31 Accrued warranty expense, which is estimated at 1.5% of sales of $196,000. 31 Accrued interest on the outstanding note payable. 2011 May 31 Paid the first installment and interest for one year on the outstanding note payable. Requirement 1. Record the transactions in Soft Sounds Music Company’s journal. Explanations are not required.

Apr 10 2020 Read more Less More

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