Instructions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., $215,000, terms n/30. 31 Issued a 30-day, 6% note for $215,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 8% note. Jul. 1 16 Aug. 15 30 Dec. 1 Purchased tools by issuing a $60,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 9% note for $400,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Paid Poulin Co. the amount due on the note of July 1. Purchased equipment from Greenwood Co. for $320,000, paying $120,000 cash and issuing a series of ten 6% notes for $20,000 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 litigation claims payable account. Required: 31 Paid the amount due to Greenwood Co. on the first hote in the series issued on December 1. 1. Journalize the transactions. Assume a 360-day year. Instructions Chart of Accounts General Journal General Journal 1. Journalize the transactions. Assume a 360-day year. Scroll down to access page 12 of the journal General Journal Instructions 1 2 S 4 PAGE 11 ACCOUNTING EQUATION JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Instructions Chart of Accounts General Journal General Journal 19 11 22 "" 23 24 17 = = 20 # 21 21 25 24 25 I Instructions Chart of Accounts General Journal General Journal 26 21 20 29 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $70,000 b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year General Journal Instructions 1 DATE DESCRIPTION Adjusting Entries PAGE 12 ACCOUNTING EQUATION JOURNAL POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Instructions Chart of Accounts General Journal General Journal 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year a. Product warranty cost, $70,000 b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year General Journal Instructions 1 DATE DESCRIPTION Adjusting Entries PAGE 12 ACCOUNTING EQUATION JOURNAL I POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY