le 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., $402,000, terms n/30. Feb. 9 Issued a 30 -day, 4% note for $402,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed \$186,000 from Verity Bank, issuing a 45-day, 4% note. June 1 Purchased tools by issuing a \$246,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 5%. 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 $186,000. (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 $440,000, paying $120,000 and issuing a series of ten 8% notes for $32,000 each, coming due at 30-day intervals. 15 Settled a product liability lawsuit with a customer for $319,500, payable in January. Shin accrued the loss in a litigation claims payable account. 31 Paid the amount due Lambert Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do no explanations. Every line on a joumal page is used for debit or credit entries. CNOW journals will automatically indent a cre: credit amount is entered. Assume a 360-day year. Round your answers to the nearest dollar. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the chart exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a journal page i credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered): a. Product warranty cost, $29,000. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. 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 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, $29,000. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. 1 As sET s 110 Cash 111 Accounts Reccivable 112 Interest Receivale 113 Notes Reccivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulsted Depreciation-Bulding 125 Office Equipment 126 Accumulsted Depreciation-Office Equipment 127 Tools 128 Accumulsted Depreciation-Took LIABIUTIES 210 Accounts Payable-Beckham Co. 211 Accounts Payable-Lambert Co. 212 Accounts Payable-Verity Bank 213 Interest Payable 214 Nates Payable 215 Sslaries Payable 216 Social Securily Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees Stale Income Tax Paysble 220 Group Insurance Payable 221 Bond Deductions Payable 224 Federal Unemployment Tax Payable 225 Stale Uhemployment Tax Payable 228 Vacation Pay Payable 227 Unfunded Pension Liability 220 Product Warranty Payable 229 Litigstion Claims Payable REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repsirs Expense 529 Selling Expenses 531 Rent Expense 532 Deprecistion Expense-Office Equipment 533 Deprecistion Expense-Tools 534 Insurance Expense 535 Supplies Expense 536 Payrol Tax Expense 537 Vacation Pay Expense 538 Pension Expense 539 Cash Short and Over 540 Product Warranty Expense 541 Miscelaneous Expense 710 Interest Expense 720 Litigstion Loss EQUITY 310 Owner, Capital 311 Owner, Drawing