# Presented below is a list of possible transactions. · &...

Presented below is a list of possible transactions.

·         1.   Purchased inventory for $80,000 on account (assume perpetual system is used). · 2. Issued an$80,000 note payable in payment on account (see item 1 above).

·         3.   Recorded accrued interest on the note from item 2 above at 10%. Assume the note is a one-year note and 3 months have passed.

·         4.   Signed a $100,000 note from the bank by signing a 6-month, zero-interest-bearing note. Prevailing annual interest rate is 10%. · 5. Recognized 4 months' interest expense on the note from item 4 above. · 6. Recorded sales revenue of$75,260 on account, which includes 5% sales tax.

·         7.   Incurred a contingency loss of $45,000 on a lawsuit. The company’s lawyer believes there is a reasonable possibility that the company could lose. · 8. Accrued warranty expense of 15,000 on sales. · 9. Paid warranty costs that were accrued in item 8 above. · 10. Purchased goods for$85,000 subject to a cash discount, terms of 2/10, n/30. Purchases and accounts payable are recorded at net amounts after cash discounts (assume perpetual system is used).

·         11. Paid the invoice from 10. above, thirty days later.

Required: Record the journal entries (if needed) for the above transactions