Liability Transactions The following items were selected from among the transactions completed by O'Donnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $144,000, terms n/30. Feb. 9. Issued a 30-day, 7% note for $144,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $147,600 from Tabata Bank, issuing a 45-day, 8% note. June 1, Purchased tools by issuing a $99,040, 60-day note to Gibala Co., which discounted the note at the rate of 7%. 15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $147,600. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15. 30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $108,000, paying $18,000 and issuing a series of ten 5% notes for $9,000 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for $76,000, payable in January. O'Donnel accrued the loss in a litigation claims payable account. 31. Paid the amount due Warick Co, on the first note in the series issued on December 1. Required: Check My Work All work saved. Save and Exit Su MacBook Pro eBook Show Me How Calculator Print Item 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount. For a compound transaction, accounts should be listed largest to smallest. Date Account Debit Credit Jan. 10 Merchandise Inventory 144,000 Accounts Payable-Laine Co. 144,000 Feb. 9 Accounts Payable-Laine Co. 144,000 Notes Payable 144,000 Mar. 11 Notes Payable 144,000 Interest Expense Cash 144,840 May 1 Cash Notes Payable June 1 Tools Interest Expense Previous Next > Check My Work All work saved. Save and Exit Submit Assignment for Grading eBook Show Me How Calculator Print Item June 1 Tools Interest Expense Notes Payable June Notes Payable 15 Interest Expense Notes Payable Cash July 30 Notes Payable Interest Expense Cash July 30 Notes Payable Cash Dec. 1 Office Equipment Notes Payable Den Show Me How Calculator Print Item Dec. 1 Office Equipment Notes Payable Cash Dec. 15 Litigation Loss Litigation Claims Payable Dec. Notes Payable 31 Interest Expense Cash 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost (b) interest on the nine remaining notes owed to Warick Co. Assume a 360-day year. Round your answers to the nearest dollar amour Item Account Debit Credit Product Warranty Expense Product Warranty Payable Interest Expense Previous Check My Work Notes Payable 31 Interest Expense Cash 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product (b) interest on the nine remaining notes owed to Warick Co. Assume a 360-day year. Round your answers to the nearest Item Debit Credit Account Product Warranty Expense Product Warranty Payable Interest Expense Interest Payable Check My Work All work saved. Save and Exit Sub 101
