bility transactions Instructions Chart of Accounts Journal nstructions The following items were selected from among the transactions completed by Sherwood Co. during the current year Mar. Apr Jun Jul. 1 Purchased merchandise on account from Kirkwood Co., $175,000, terms 31 issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account 30 Paid Kirkwood Co the amount owed on the note of March 31. 1 Borrowed 5400,000 from Triple Creek Bank, issuing a 45 day, 5% note. 1 Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate of 7% 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% note for $400,000. (Journalize both the debit and credit to the notes payable account.) 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co the amount due on the note of July 1. Purchased equipment from Greenwood Co for $260,000, paying $40,000 cash and issuing a series of ten 9% notes for $22,000 each coming due at 30-day intervals 22 Settled a product liability lawsuit with a customer for $50,000, payable in January, Accrued the loss in a tigation claims payable account 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles): a Product warranty cost $80,000