Chapter 11 Current Liabilities and Payroll 575 a. Determine the quick ratio for both companies Bound to one decimal place. Interpret the quick ratio difference between the two companies ms: Series A W How PR 11-1A Liability transactions 081.1,5 The following items were selected from among the transactions completed by Shin Co. during the current year Jan. 10. Purchased merchandise on account from Beckham Co., $420,000, terms n/30. Feb. 9. Issued a 30-day, 6% note for $420,000 to Beckham Co, on account. Mar. 11. Paid Beckham Co. the amount owed on the note of February 9. May 1. Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. June 1. Purchased tools by issuing a $512,000, 60-day note to Rassmaessen Co., which discounted the note at the rate of 5% 15. Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $240,000 (Journalize both the debit and credit to the notes payable account.) July 30. Paid Verity Bank the amount due on the note of June 15. 30. Paid Rasmussen Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Lambert Co. for $700,500 paying $160,500 and issuing a series of ten 5% notes for $5,000 each, coming due at 30-day intervals 15. Settled a product liability lawsuit with a customer for $144,200 payable in January: Shin accrued the loss in a litigation claims payable account. 31. Paid the amount due Lambert Co. on the first note in the series issued on December 1. Instructions 1. Journalize the transactions 2. Journalize the adjusting entry for each of the following accrued expenses at the end the current year: a. Product warranty cost, $19,500. b. Interest on the nine remaining notes owed to Lambert Co. OBJ.2