#2

The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co. 3390.000, terms n/30. 31 Issued a 30-day. 10\%, note for $390,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co, the amount owed on the note of March 31. Jun 1 Borrowed 5156,000 from Triple Creek Bank, issuing a 45-day, 8*, note. Jul. 1 Purchased tools by issuing a $216,000,60-day note to Poulin Co., which discounted the note at the rate of 6% 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30 -day, 6.5% note for 5156.000 . (Journalize both the debit and credit to the notes payable account) Aug- 15 Paid Triple CreekBank the amount due on the note of July 16. 30 Paid Poulin Co the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8% notes for $35,000 each, coming due at 30 -day intervals. 22. Settled a product liability lawsuit with a customer for $310.000, payable in January. Accrued the loss in B litigation claims payable account 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1 . Required: 1. Joumalize the transactions. Assume a 360-day year. 2. Joumalize the adusting entry for each of the following aconved expenses at the end of the current year 3. Product warranty cost $25,500. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year 1. soumakire the transzitions Assume a 760 -dey year. Seroll dewn fo access page 12 of the joumal 2. Joumalire the adjustng enily for each of the following accrued expentes at the end of the curtent year: a. Product warranty oost 525 500 b. bitemut on the nine hmanng nodes owed to Gresisod Co Asuume a Jeo-day year