11.7

Liability Transactions

The following items were selected from among the transactions completed by Warwick Co. during the current year:

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $32,500; (b) interest on the nine remaining notes owed to Oso Co.

1. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year.