Instructions X X Chart of Accounts ASSETS A REVENUE The following items were selected from among the transactions completed by Sherwood Co. during the current year: 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue Mar. 1 Purchased merchandise on account from Kirkwood Co., $215,000, terms n/30. 112 Interest Receivable 31 Issued a 30-day, 6% note for $215,000 to Kirkwood Co., on account. 113 Notes Receivable EXPENSES Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. 115 Inventory 510 Cost of Goods Sold Jun. 1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 8% note. Purchased tools by issuing a $60,000, 60-day note to Poulin Co., which discounted the note at the rate 116 Supplies 520 Salaries Expense Jul. 1 of 6% 118 Prepaid Insurance 524 Depreciation Expense-Building 120 Land 16 525 Delivery Expense Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 123 Building 526 Repairs Expense 529 Selling Expenses Aug 15 124 Accumulated Depreciation-Building 30 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. 531 Rent Expense 125 Office Equipment 532 Depreciation Expense-Office Dec. 1 126 Accumulated Depreciation Office Equipment Equipment 22 127 Tools 533 Depreciation Expense-Tools Settled product liability lawsuit with a customer for $50,000, 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. 128 Accumulated Depreciation-Tools 534 Insurance Expense 31 535 Supplies Expense LIABILITIES 536 Payroll Tax Expense Required: 537 Vacation Pay Expense 1. Journalize the transactions. Assume a 360-day year. 538 Pension Expense 210 Accounts Payable-Kirkwood Co. 211 Accounts Payable-Greenwood Co. 212 Accounts Payable-Poulin Co. 213 Interest Payable 539 Cash Short and Over 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. 540 Product Warranty Expense 214 Notes Payable 541 Miscellaneous Expense 215 Salaries Payable 710 Interest Expense General Journal X X Chart of Accounts LIABILITIES 536 Payroll Tax Expense 1. Journalize the transactions. Assume a 360-day year. Scroll down to access page 12 of the journal 210 Accounts Payable-Kirkwood Co. 211 Accounts Payable-Greenwood Co. 212 Accounts Payable-Poulin Co. 537 Vacation Pay Expense 538 Pension Expense 539 Cash Short and Over General Journal Instructions 213 Interest Payable 540 Product Warranty Expense 214 Notes Payable 215 Salaries Payable 541 Miscellaneous Expense 710 Interest Expense 216 Social Security Tax Payable 720 Litigation Loss JOURNAL ACCOUNTING 217 Medicare Tax Payable DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILIT 1 1 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 2 3 4 220 Group Insurance Payable 5 221 Bond Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 6 7 8 9 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 Litigation Claims Payable 10 11 12 EQUITY 310 Common Stock 311 Retained Earnings General Journal A 540 Product Warranty Expense 27 X Chart of Accounts 213 Interest Payable 214 Notes Payable 215 Salaries Payable 541 Miscellaneous Expense 28 710 Interest Expense 29 720 Litigation Loss 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax 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 Payable b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year. 219 Employees State Income Tax Payable 220 Group Insurance Payable 221 Bond Deductions Payable General Journal Instructions 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable JOURNAL ACCOUNTING 227 Unfunded Pension Liability 228 Product Warranty Payable DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILIT 1 Adjusting Entries 229 Litigation Claims Payable 2 3 EQUITY 310 Common Stock 4 5 5 311 Retained Earnings 312 Dividends