Answer:
Please see below for all the journal entries required for Houston.
Explanation:
2017
Jan. 9
Debit: Computer Equipment $9,000
Debit: Interest Expense $630
Credit: Interest Payable ($9,000 x 7%) $630
Credit: Notes Payable $9,000
Jan. 29
Debit: Accounts Receivables ($69,000 x 3/4) $51,750
Debit: Cash ($69,000 x 1/4) $17,250
Credit: Sales Tax Payable ($69,000 x 6%) $4,140
Credit: Sales $69,000
Feb. 5
Debit: Sales Tax Payable $4,140
Credit: Cash $4,140
Jul. 9
Debit: Interest Payable ($9,000 x 7%) $630
Debit: Notes Payable $9,000
Credit: Cash $9,630
Aug. 31
Debit: Inventory $3,000
Debit: Interest Expense $330
Credit: Interest Payable ($3,000 x 11%) $330
Credit: Notes Payable $3,000
Dec. 31
Debit: Warranty Expense ($601,000 x 3%) $18,030
Credit: Accrued Warranty $18,030
Dec. 31
Debit: Interest Payable $330
Credit: Accrued Interest $330
2018
Feb. 28
Debit: Accrued Interest $330
Debit: Notes Payable $3,000
Credit: Cash $3,330
