Instructions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. Jun. Jul. Aug. Dec. A 1 Purchased merchandise on account from Kirkwood Co., $402,000, terms n/30. 31 30 1 1 16 15 30 22 Issued a 30-day, 4% note for $402,000 to Kirkwood Co., on account. Paid Kirkwood Co. the amount owed on the note of March 31. Borrowed $186,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $246,000, 60-day note to Poulin Co., which discounted the note at the rate of 5%. 1 Purchased equipment from Greenwood Co. for $440,000, paying $120,000 cash and issuing a series of ten 8% notes for $32,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $319,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. 31 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $186,000. (Joumalize 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. Required: 1. Journalize the transactions. Assume a 360-day year. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $29,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

The folowing ieine were selectod trom among the tranachons compleied by sheneood Co: during the currem year: Mar: - 1 Purchased merchandise an account trom Kowwood Ca, 8402,000 , terms n80. 31 bsoed a 30-day 4\% note for $402,000 to Kirkwood Co, on socount. Ape. 30 Poid KCrwood Co. the amount owed on the note of March 31. Jun. 1 Gomowbd 5186,000 bom Triple Creek tank, issuing a 45 dey, 45 nole. Jul 1 Parchased fools by isaing a 5246,000,60-day note to Poulin Co, which decosunted the note at the rate of 5% 15. Paid Triple Creek Bank the knterest due on the hote of June 1 and renewed the loan by istuing a new 30-dey. 55% note for \$18t o00. (Joumalze both the dobit and credt to the notes payable acoount) Aug. is Pad Triple Creet Bark the anount due on the note of July 16 30 Pad Poulin Co. the amount due on the note of dily 1. Dec. 1 Purchased equpment from Greenwood Ce for $440,000 peying $12t.000 cash and issuing a series of ten 81 notos tor 532.000 each, coming due at 30-day imervais. 22. Settied a product lablily lawult with a cuttomer for $319,500, payable in Jaruary. Acenued the loss in a litgetion ciams psyable account. 31. Paid the amount due to Greenwood Co on the frat note in the series hoved on Dooember 1. Aequired: 1. Jocmakre the frapcactions Astume a 360-day rear 2. Joumakte the acfusting ently for each of the folowing accriod expenses at the end of the curent year: a. Product warranty cost, $99,000 b. Inlereat on the nine romaining notes oned to Groerwood Co. Assume a 360 doy year. CPART OF ACCOUNTS Sherwood Ca General Ledger ASSETS 110 Cash 111 Accounts Recevable 112 interest Recelvable 113 Notes Recelvabion 115 invenlon 116 Supples 118. Prepaid insurance 120 LaNd 123 Bulding 124 Accumulaled Depreciaton-buldme 125 Oftce tqupment 126 Acoumulated Cepreoiston-Ctice Equpmect 127 Tooin 12. Acoumulated Deprecieton. Toois LABILITES 210 Aocounts Payable-Kirkwood Co 211 Accounts Paybtle-Creenwcod Co. 212 Acoourts Payable-Poulin Co 213 interest Payable 214 Noles Payable 215 Salaries Payable 216 Sociak Secunty Tax Payable 217 Medicare Tax Payable 218 Eriployees Federal income Tax Payable REVENUE 410 Sales 510 interet Reverue Expenses 510 Cost of coods 501 d 5 5.0 Svente Exptnse 524 Deprodason Erpense-tulisg sas Delvery Cxptine Sat Repan Experte S29 Seling Experses s31 Ren Ewpent 532 Deperciation Expente-Olice Equpment 533 Depredibion Expenie-Toos 534 inwurahce Expense 535 Supsiles Expente 536 Partol Tix Fxpente 597 Vacaton Pay Expense 538 Peraion Expense 539. Cash short and Over 540. Product Wamanty Experse 541 Muctilaneous Expense 710 interest Experse 720 Lbgaton Les 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 EQUITY 310 Common Stock 311 Retained Eamings 312 Dividends 1. soinaker the transisfons. Assume a seo-dar yes. Sorol dewn to acceis pege 12 of the jouma! 2. Joumalize the adjusting entry for each of the following acorued expenses at the end of the current year: a. Product warranty cost, $29,000 b. Interest on the nine remaining notes owed to Greonwood Co. Assume a 360-day year