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, $7\%$ 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 $$180,000$ from Triple Creek Bank, issuing a $60-$day, $8\%$ note.

July $21.$ Purchased tools by issuing a $$120,000,90-$day note to Poulin Co$.,$ which discounted the note at the rate of $6\%.$

Aug. $14.$ Paid 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 $$180,000.($Journalize both the debit and credit to the notes payable account.$)$

Oct. $13.$ Paid Triple Creek Bank the amount due on the note of August $14.$

Oct. $19.$ Paid Poulin Co$.$ the amount due on the note of July $21.$

Dec. $1.$ Purchased office equipment from Greenwood Co$.$ for $$120,000,$ paying $$20,000$ cash and issuing a series of ten $6\%$ notes for $$10,000$ each, coming due at $30-$day intervals.

Dec. $12.$ Settled a product liability lawsuit with a customer for $$71,000,$ 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 $1.$

$2.$ Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: $($a$)$ product warranty cost, $$17,300$; $($b$)$ interest on the nine remaining notes owed to Greenwood Co$.$