P10-15A Journalizing liability transactions [30–40 min] The following transactions of Denver Pharmacies occurred during 2011 and 2012:

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P10-15A Journalizing liability transactions [30–40 min]
The following transactions of Denver Pharmacies occurred during 2011 and 2012:
Purchased computer equipment at a cost of $9,000, signing a six-month,
6% note payable for that amount.

Recorded the week’s sales of $64,000, three-fourths on credit, and
one-fourth for cash. Sales amounts are subject to a 6% state sales tax.
Sent the last week’s sales tax to the state.

Borrowed $204,000 on a four-year, 10% note payable that calls for $51,000
annual installment payments plus interest. Record the current and
long-term portions of the note payable in two separate accounts.
Paid the six-month, 6% note, plus interest, at maturity.

Purchased inventory for $12,000, signing a six-month, 9% note payable.
Accrued warranty expense, which is estimated at 2% of sales of $603,000.
Accrued interest on all outstanding notes payable. Make a separate
interest accrual for each note payable.

Paid the first installment and interest for one year on the four-year note
payable. Paid off the 9% note plus interest at maturity.

Requirement
1. Journalize the transactions in Denver’s general journal. Explanations are not
required.