P13-17 Comprehensive Selected transactions of the Lizard Lick Corporation during 2007 are as follows:

Jan.   5       Purchased merchandise from Boston Company for $30,000; terms, 2/10, n/30. Purchases and accounts payable are recorded by Lizard Lick using the net price method.

Jan. 26      Paid the January 5 invoice.

Mar. 31          Purchased a van for $19,950 from the Hill Sales Company, paying $9,950 in cash and issuing a 12%,  one-year note for the balance of the purchase price.

May  1      Borrowed money from the Mebane National Bank by discounting its own one-year, non-interest-bearing note made out for the maturity value of $50,000 at an interest rate of  12%.

Nov. 2      Received $500 from the Carr Mill Playhouse as a deposit to be refunded after certain rental furniture to be used in a play is returned on January 7, 2008.

Nov. 5      Made sales on credit to Jones Company for $15,000. Sales taxes of 61/2% were added to the $15,000 price. (Ignore

cost of goods sold.)

Nov. 6 Purchased another van at a cost of $18,000 from a company located in a state that does not levy a sales tax. The entire purchase price was paid in cash. Lizard Lick is located in a state that assesses a use tax of 61/2% on non- salable equipment bought outside its sales tax authority. The van and the liability for the use tax are to be recorded.

Dec. 1 Estimated property taxes for the year December 1, 2007 to November 30, 2008 are $36,000 (ignore previous property taxes). The corporation follows the practice of recording its property tax by a monthly accrual starting one month fol- lowing the lien date. The tax becomes a lien on December 1 and is payable in two installments on May 1 and October 1.

Dec. 31          Estimated quarterly income taxes for the last quarter of the year are $150,000.

Required

Prepare journal entries to record the preceding transactions for 2007. Include year-end interest  accruals.