Liability Transactions

he folowing femb were selected from among the tranenctions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., \$215,000, terms ns30. 31 Issued a 30-day, 6% note for $215,600 to Kirkwood Co., on account. Apr. 30. Paid Kikwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed 5400.000 trom Triple Creek Bank, issuing a 45 .day, BN note. Jul. 1 Purchated tools by issuing a 560,000 , 60-day note to Poulin Co, which discounted the note at the rate ot 6%. 16. Paid Triple Creek Bank the interest due on the note of June 1 and renewod the loan by issuing a new 30-day. Pht note for 3400,000 . (Journalize both the debit and credit to the notes pdyable account.) Aug. 15. Paist Triple Creek Bank the amount due on the note of July 16 . 30 Paid Poulin Co, the amount due an the note of July 1 . Bec. 1. Purchased equipment from Greenwood Co. for 5320,000 , paying $120,000 cash and issuing a series of ten 6% notes for $20.000 each, coming due at 30 -day intervale. 22. Setted a product labily lawsuif with a customer for $50.000, payable in January. Accrued the loss in a thigation ctaine payabie account. 31 Paid the amount due to Greenwood Co, on the first note in the sories issued on December 1 . Required: 1. dournalize the transactions. Assume a 360 -day year, 2. Noumalte the adusting entry for each of the following accrued expenses at the end of the current year: a. Product wamanty oost, 570,000 b. Interest on the nine revalhing notes owed to Greenwood Co. Assume a 360-day year