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ACC 1 1 0 - Principles of Accounting II Assignment Problem 1 0 - 1 A: Liability Transactions The following items were selected from among
ACC Principles of Accounting II
Assignment Problem A: Liability Transactions
The following items were selected from among the transactions completed by Sherwood Co during the current year:
tableMarPurchased merchandise on account from Kirkwood Co $ terms nIssued a day, note for $ to Kirkwood Co on account.AprPaid Kirkwood Co the amount owed on the note of March JuneBorrowed $ from Triple Creek Bank, issuing a day, note.JulytablePurchased tools by issuing a $day note to Poulin Co which discounted thenote at the rate of tablePaid Triple Creek Bank the interest due on the note of June and renewed the loan byissuing a new day, note for $Journalize both the debit and credit to thenotes payable account.AugPaid Triple Creek Bank the amount due on the note of July Paid Poulin Co the amount due on the note of July DectablePurchased equipment from Greenwood Co for $ paying $ cash andissuing a series of ten notes for $ each, coming due at day intervals.tableSettled a product liability lawsuit with a customer for $ payable in January.Accrued the loss in a litigation claims payable account.tablePaid the amount due to Greenwood Co on the first note in the series issued onDecember
Directions:
Journalize the transactions.
Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:
a Product warranty cost, $
b Interest on the nine remaining notes owed to Greenwood Co
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