You are the accountant for Sandys Surfboards. Below are several transactions that involve current liabilities....
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Accounting
You are the accountant for Sandys Surfboards. Below are several transactions that involve current liabilities. Use the Lab 22 Journal Template page provided to journalize the transactions below. When you are done upload the journal page using the Lab 22 upload link.
Date
Transactions
2020
April 1
A customer gives Sandy $1,500 up front to make a custom surfboard. The surfboard will be delivered in May 2020.
April 1
Sandy signs a note payable in the amount of $9,000 cash with an annual interest rate of 12% to be repaid after 9 months.
May 12
Sandy delivers the surfboard that was paid for on April 1st
June 30
Sandy accrues the 3 months interest expense for the note she took out on April 1. She is not paying the interest until she pays off the note.
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