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Practical Question 1: Journalize the following liability transactions for Builders Hardware.
a. Feb 15 Issued a 90 day, 12% interest bearing note for $20,000 to Heritage Bank for a loan.
b. Apr 16 Purchased a $45,000 motor vehicle from Bravo Motors, issuing a 5%, 120-day discounted note payable.
c. ________ Paid Heritage Bank. State maturity date.
d. ________ Paid Bravo Motors. State maturity date.
e. Sept 30 Accrued vacation pay for the third quarter of the year is $40,000
f. Oct 10 Builders Hardware made sales of $483,000. Builders received cash for 30% of the sales and accepted notes receivable for the remainder.
g. Oct 10 Builders expect warranty costs to equal 6% of sales.
h. Nov 22 Warranty claims satisfied totaled $19,000 of which $12,000 were paid in cash and $7,000 in parts replacement.
i. Dec 31 Employees pension for the year total $40,000 which was fully funded.
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