Reference no: EM131577641

Problem - The following transactions of 5 String Music Company occurred during 2013 and 2014:

2013

Mar 3 Apr 30

Sept 3 Dec 31

Dec 31

2014

Apr 30

Required:

Purchased a Steinway piano (inventory) for $43,000, signing a six-month, 10% note

Borrowed $53,000 on a 11% note payable that calls for annual instalment payments of $26,500 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable

Paid the six-month, 10% note at maturity

Accrued warranty expense, which is estimated at 4% of sales of $190,000

Accrued interest on the outstanding note payable

Paid the first instalment plus interest for on year on the outstanding note payable

Record the general journal entries for 5 String Music.