e 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., $396,000, terms n/30. Feb. 9 Issued a 30 -day, 4% note for $396,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $174,000 from Verity Bank, issuing a 45 -day, 4% note. June 1 Purchased tools by issuing a $258,000,60-day note to Rassmuessen Co0, which discounted the note at the rate of 7%. 15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 6.5% note for $174,000. (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 Rassmuessen Co. the amount due on the note of June 1. Dec. 1 Purchased office equipment from Lambert Co. for $400,000, paying $114,000 and issuing a series of ten 4% notes for $28,600 each, coming due at 30 -day intervals. 15 Settled a product liability lawsuit with a customer for $311,500, payable in January. Shin accrued the loss in a fitigation claims payable account. 31 Paid the amount due Lambert Co. on the first note in the series issued on December 1. 1. Joumalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360 -day year. Round your answers to the nearest dollar. 2. Joumalize the adjusting entry for each of the following accrupd expenses at the end of the current year (refer to the chart of accounts for the exact wording of the account tities. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered): a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. CHART OF ACCOUNTS Shin Co. General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment 127 Tools REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Depreciation Expense-Tools \begin{tabular}{ll} 127 Tools & 533 Depreciation Expense-Tools \\ 128 Accumulated Depreciation-Tools & 534 Insurance Expense \\ LIABILITIES & 535 Supplies Expense \\ 210 Accounts Payable-Beckham Co. & 536 Payroll Tax Expense \\ 211 Accounts Payable-Lambert Co. & 537 Vacation Pay Expense \\ 212 Accounts Payable-Verity Bank & 538 Pension Expense \\ 213 Interest Payable & 539 Cash Short and Over \\ 214 Notes Payable & 540 Product Warranty Expense \\ 215 Salaries Payable & 541 Miscellaneous Expense \\ 216 Social Security Tax Payable & 710 Interest Expense \\ 217 Medicare Tax Payable & 720 Litigation Loss \\ 218 Employees Federal Income Tax Payable & \\ 219 Employees State Income Tax Payable & \\ 220 Group Insurance Payable & \\ 221 Bond Deductions Payable & \\ 224 Federal Unemployment Tax Payable & \\ 225 State Unemployment Tax Payable & \\ \hline \end{tabular} 219 Employees State Income Tax Payable 220 Group Insurance Payable 221 Bond Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 Litigation Claims Payable 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 the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a joumal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.): a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year