Liability Transactions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Feb. 15. Purchased merchandise on account from Kirkwood Co. $144,000, terms n/30. Mar. 17. Issued a 60-day, 8% note for $144,000 to Kirkwood Co., on account. May 16. Paid Kirkwood Co the amount owed on the note of March 17. June 15. Borrowed $148,800 from Triple Creek Bank, issuing a 60-day, 9% note. Duly 21. Purchased tools by Issuing a $96,000, 90-day note to Poulin Co., which discounted the note at the rate of 8%. Aug. 14. Pald Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $148,800. Journalize both the debt and credit to the notes payable account.) Oct. 13. Pald Triple Creek Bank the amount due on the note of August 14, Oct. 19. Pald Poulin co the amount due on the note of July 21. Dec. 1. Purchased office equipment from Greenwood Co. for $144,000, paying $24,000 cash and issuing a series of ten 6% notes for $12,000 each, coming due at 30-day intervals. Dec. 12. Settled a product liability lawsuit with a customer for $72,000, payable in January, Accrued the loss in a litigation claims payable account. Dec. 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Dont round the intermediate calculations. For a compound transaction, accounts should be listed largest to smallest. eBook Show Me How Calculator Print Item Date Debit Credit Feb. 15 Account Inventory Accounts Payable-Kirkwood Co. 144,000 o 0 144,000 Mar. 17 144,000 0 Accounts Payable-Kirkwood Co. Notes Payable 0 144,000 May 16 0 Notes Payable Interest Expense Cash 144,000 1,920 o 0 145,920