ability Transactions the following items were selected from among the transactions completed by Aston Martin Inc, during the current year: Apr. 15. Borrowed $225,000 from Audi Company, Issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by Issuing a $320,000, 180-day note to Spyder Manufacturing Co. which discounted the note at the rate of 6% 15. Pald Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14, Paid Audi Company the amount due on the note of May 15. Aug, 16. Purchased merchandise on account from Exige Co., $90,000, terms, /30. Sept. 15. Issued a 45-dak,% note for $90,000 to Exige Co., on account. Oct, 28. Pald Spyder Manufacturing Co the amount due on the note of May 1 30. Pald Exige Co, the amount owed on the note of September 15 Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. Dec. 16. Paid the amount due Gallardo Co on the first note in the series issued on November 16. 28. Settied a personal injury lawsuit with a customer for $87,500, to be paid in January, Aston Martin Inc. accrued the loss in a litigation claims payable account. Date Account Debit Credit Apr. 15 Cash Notes Payable May 1 Equipment Interest Expense Notes Payable May 15 Notes Payable I III III II Interest Expenge Notes Payable dropdown Cash July 14 Notes Payable Interest Expense Cash Aug. 16 Inventory Accounts Payable - Exige Co. Sept. 15 Accounts Payable - Exige Co. Accounts Payable - Exige Co. Sept. 15 Accounts Payable - Exige Co. Notes Payable Oct. 28 Notes Payable Cash Oct. 30 Notes Payable Interest Expense Cash Nov. 16 Store Equipment Notes Payable Cash Dec. 16 Notes Payable Interest Expense Cash Dec. 28 Litigation Loss Litigation Claims Payable 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $26,800. b. Interest on the 19 remaining notes owed to Gallardo Co. Item Account Debit Credit Product Warranty Expense Product Warranty Payable b. Interest Expense Interest Payable