Liability transactions Instructions Chart of Accounts Journal 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., $414,000, terms n/30. 31 Issued a 30-day, 4% note for $414,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $180,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the Jul. 1 rate of 6% 16 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 $180,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Aug 15 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 22 Purchased equipment from Greenwood Co. for $520,000, paying $90,000 cash and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $315,000, 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. 31 Check My Work Previous Next > Liability transactions Instructions Chart of Accounts Journal Instructions Aug. 15 30 Dec. 1 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 $520,000, paying $90,000 cash and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $315,000, 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. 22 31 Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. 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 of Accounts for exact wording of account titles): a. Product warranty cost, $26,500. b. Interest on the nine remaining notes owed Greenwood Co. Assume a 360-day year. Check My Work Previous Next > Journal 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 4 5 6 7 Instructions Chart of Accounts Journal Chart of Accounts 125 Office Equipment 531 Rent Expense 532 Depreciation Expense-Office Equipment 126 Accumulated Depreciation Office Equipment 127 Tools 533 Depreciation Expense-Tools 128 Accumulated Depreciation-Tools 534 Insurance Expense 535 Supplies Expense LIABILITIES 536 Payroll Tax Expense 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 213 Interest Payable 540 Product Warranty Expense 214 Notes Payable 541 Miscellaneous Expense 215 Salaries Payable 710 Interest Expense 720 Litigation Loss 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 220 Group Insurance Payable Check My Work Previous Next > x Journal 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume 360-day year. PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries 2 3 4 5 Check My Work Previous Next Journal 21 22 23 24 25 26 28 29 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year. Check My Work Previous Next x Journal 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume 360-day year. PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries 2 3 4 5 Check My Work Previous Next Liability transactions Instructions Chart of Accounts Journal 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., $414,000, terms n/30. 31 Issued a 30-day, 4% note for $414,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $180,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the Jul. 1 rate of 6% 16 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 $180,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Aug 15 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 22 Purchased equipment from Greenwood Co. for $520,000, paying $90,000 cash and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $315,000, 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. 31 Check My Work Previous Next > Liability transactions Instructions Chart of Accounts Journal Instructions Aug. 15 30 Dec. 1 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 $520,000, paying $90,000 cash and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $315,000, 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. 22 31 Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. 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 of Accounts for exact wording of account titles): a. Product warranty cost, $26,500. b. Interest on the nine remaining notes owed Greenwood Co. Assume a 360-day year. Check My Work Previous Next > Journal 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 4 5 6 7 Instructions Chart of Accounts Journal Chart of Accounts 125 Office Equipment 531 Rent Expense 532 Depreciation Expense-Office Equipment 126 Accumulated Depreciation Office Equipment 127 Tools 533 Depreciation Expense-Tools 128 Accumulated Depreciation-Tools 534 Insurance Expense 535 Supplies Expense LIABILITIES 536 Payroll Tax Expense 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 213 Interest Payable 540 Product Warranty Expense 214 Notes Payable 541 Miscellaneous Expense 215 Salaries Payable 710 Interest Expense 720 Litigation Loss 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 220 Group Insurance Payable Check My Work Previous Next > x Journal 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume 360-day year. PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries 2 3 4 5 Check My Work Previous Next Journal 21 22 23 24 25 26 28 29 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year. Check My Work Previous Next x Journal 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 exact wording of account titles): A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Greenwood Co. Assume 360-day year. PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries 2 3 4 5 Check My Work Previous Next
