Answer and Explanation:
The journal entries are shown below:
On Jan. 9
Computer Equipment $12,000
To Short-term Notes Payable $12,000
(Being computer equipment is purchased)
On Jan. 29
Cash ($63,000 × 1 ÷ 4 × 1.06) $16,695
Accounts Receivable ($63,000 × 3 ÷ 4 × 1.06) $50,085
To Sales Revenue $63,000
(Being sales revenue is recorded)
On Feb. 5
Sales Tax Payable $3,780
To Cash $3,780
(Being cash paid is recorded)
On Jul. 9
Short-term Notes Payable $12,000
Interest Expense ($12,000 × 9% × 6 ÷ 12) $540
To Cash ($12,000+$540) $12,540
(Being cash is paid)
On Aug. 31
Inventory $9,000
To Short-term Notes Payable $9,000
(Being inventory is recorded)
On Dec. 31
Warranty Expense ($609,000 × 4%) $24,360
To Estimated Warranty Payable $24,360
(Being warranty expense is recorded)
On Dec. 31
Interest Expense ($9,000 × 10% × 4 ÷ 12) $300
To Interest Payable $300
(Being interest expense is recorded)
On Feb. 28
Short-term Notes Payable $9,000
Interest Expense ($9,000 × 10% × 2 ÷ 12) $150
Interest Payable ($9,000 × 10% × 4 ÷ 12) $300
To Cash ($9,000+$300+$150) $9,450
(Being cash is recorded)
