p7-37 2020 MAR 3. PURCHASED A STEINWAY PIANO (INVENTORY) FOR $40,000,SIGNING A SIX-MONTH, 5% NOTE. APR. 30

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p7-37
2020
MAR 3. PURCHASED A STEINWAY PIANO
(INVENTORY) FOR $40,000,SIGNING A SIX-MONTH, 5% NOTE.
APR. 30 BORROWED $50,000 ON A 9% NOTE
PAYABLE THAT CALLS FOR ANNUAL INSTALMENT PAYMENT OF $25,000
PRINCIPAL PLUS
INTEREST. RECORD THE SHORT-TERM NOTE PAYABLE IN A
SEPATE ACCOUNT FROM THE LONG TERM NOTE PAYABLE.
SEPT. 3 PAID THE SIX-MONTH, 5% NOTE AT
MATURITY,
DEC 31. ACCRUED WARRANTY EXPENSES, WHICH IS
ESTIMATED AT 2% OF SALES OF $190,000.
DEC 31. ACCRUED INTEREST ON THE OUTSTANDING NOTE
PAYABLE.
2021
APR. 30 PAID THE FIRST INSTALLMENT PLUS
INTEREST FOR ONE YEAR ON THE OUTSTANDING NOTE PAYABLE.
REQUIREMENT
RECORD THE TRANSACTION IN SMOOTH SOUNDS JOURNAL, EXPLANATION ARE
NOT REQUIRED.