Liability transactions The following items were selected from among the transactions completed by Sherwood Co . during
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Liability transactions
The following items were selected from among the transactions completed by Sherwood Co during the current year:
Date Transaction
Feb. Purchased merchandise on account from Kirkwood Co $ terms n
Mar. Issued a day, note for $ to Kirkwood Co on account.
May Paid Kirkwood Co the amount owed on the note of March
June Borrowed $ from Triple Creek Bank, issuing a day, note.
July Purchased tools by issuing a $day note to Poulin Co which discounted the note at the rate of
Aug. Paid Triple Creek Bank the interest due on the note of June and renewed the loan by issuing a new day, note for $Journalize both the debit and credit to the notes payable account.
Oct. Paid Triple Creek Bank the amount due on the note of August
Oct. Paid Poulin Co the amount due on the note of July
Dec. Purchased equipment from Greenwood Co for $ paying $ cash and issuing a series of ten notes for $ each, coming due at day intervals.
Dec. Settled a product liability lawsuit with a customer for $ payable in January. Accrued the loss in a litigation claims payable account.
Dec. Paid the amount due to Greenwood Co on the first note in the series issued on December
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