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 Aug 16 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. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Assume a 360-day year. Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Increase in retained earnings K Retained earnings, December 31 Sales 20Y2 20Y1 $3,704,000 $3,264,000 $600,000 $550,000 (10,000) (10,000) (100,000) (100,000) $490,000 $440,000 $4,194,000 $3,704,000 A Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Cost of goods sold Gross profit Selling expenses 2012 20Y1 $10,850,000 $10,000,000 (6,000,000) (5,450,000) $4,850,000 $4,550,000 $(2,170,000) $(2,000,000)