Liability Transactions The following items were selected from among the transactions completed by Shin Co. during the current years Jan. 10. Purchased merchandise an account from Beckham Co., $144,000, terms n/30. Feb. 9. Issued a 30-day, 6% note for $144,000 to Beckham Co, on account Mar. 11. Paid Beckham Co the amount owed on the note of February 9. May 1. Borrowed $140,400 from Verity Bank, issuing a 45-day, 7% note. June 1. Purchased tools by issuing a $102,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 7. 15. Paid Verity Bank the interest due on the note of May 1 and renewed the loan by fasuing new 45-day, 7 note for $140,400 (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 $96,000, paying $16,000 and issuing a series of ten 5% notes for $8,000 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for $75,000, 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 1. ure the transactions. If an amount box does not require an entry, have it blank. Ansure a 360-day year Don't round the intermediate calculations and round the final answers to the nearest dollar amount for compound transaction, accounts should be lite largest to west. Date Account Debat Credit lar, 10 Notes Payable Troba Mot 11 May 1 II III II III June 1 June 15 July 30 II III II III IIII July 30 Dec. 1 III II Dec. 15 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, 516,600; (b) interest on the nine remaining notes owed to Lambert Co. Assume 360.cay year. Round your answers to the nearest dollar amount. Item Account Debit Credit Product Warranty Experte Product Warranty Payne Interest Expense 700.80 Interesante 700.00
