Mat. 1 Purchased merchandise on account from Kirkwood Co. S414,000, terms n/30. 31 Lssued a 30 -day, 4% note for $414,000 to Kirkwood Co., on account. Apr. 30 Paid Krkwood Ca. the amount owed on the note of March 31. Jun. 1 Borrowed $180,000 from Triple Creek Bank, issuing a 45 -day, 4% note. Jul. 1 Purchased tools by issuing a $228,000,60 day nole to Poulin Co., which discounted the note at the rate of 6% 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5\% note for 5180,000 . (Joumalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Doc. 1 Purchased equipment from Groenwood Co. for $520,000, paying $90,000 cash and issuing a senes of ten 4% notes for 543,000 each, coming due at 30 day intervals. 22. Selled a produet liabilify lawsuit with a customer for 5315,000 , payable in January. Accrued the loss in a litigation claims payabie account. 31 Paid the amount due to Greerwood Ca. on the first note in the series issued on December 1. Required: 1. Journalie the transactions. Reter to the Chart of Accounts for exact wording of account thies. Assume a 300-day year, Rouno answers to the nearest dollar. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account thies): a. Product warranty cost, 520,500 . b. Interest on the nine remaining notes owed to Greenwood co. Assume a 300-day year. ASSETs REVEYUE 110 Cinh 410 Sases I11 Recounts Recarable 610 Intorest Raverue 112 Interest Receinable 113 Notes Rocovahle EXDENSES 115 inventary 510 Cosit ar Goods Sold 116 Sueplies 570 Sularies Eiparse 118 Prepaid Irsurance 524 Deprraciaton Expense Aliling 120 Land 525 Deivery Experise 123 Bulding S26 Plepars Fionest 124 Accumulated Depreciation Bulding 529 Seling Expenses 125 Office Equipment 531 Aont Experse 126 Acoumulntod Depteciation Oftico Cqpnent 532 Depredidion Expense Ofice Fquipment 127 Toos 533 Depreciaton Expense Touls 128 Accumulated Deprecistion- Toole 534 inedarce Expente $35 supples Fxperse LABMLTIES 536 Payral Tax Expense 210 Accounts Payable Kirkowood Ca. 537 Vacaion Pxy Experen 211 Accuirts Payable Girenwood Co sad fetson Experse 212 Acoounts Payable Poulin Co. 539 Cut Shot and Ouer 213 intmest Pryabim S40 Phatue Waracy Txperen 214 Nates Payatie 541 Miscelajesus Experoe 215 Saluries Payable 710 interest Euporse 216 Sceal Socurily Tex Payalie 720 titertion 1 ost 217 Medicare Tax Payable 218 Errichees Federal Irecome Tax Payable 219 Enpioyens Stain Income Tax Payable 320 Group haurance Rayable 221 Bond Deductions Payable 224 Federal Uneiryloyment Tax Paratile 225 'Stio Unecwployment Tax Payable 2226 Vacation Pay Panatle 227 Unfunded feraion Linbitity 20 . Product Warrasty Payable 229. Liliygtion Claims Psyatic. EQUITY 310 Camman 5 Siod 2t1. Retained Catningt 1. jouinatte the transactions. Refer to the Chart of Accounts for exact worving of account Des. Assume a soo-day year: Scrow oonn to access page 12 or the joumat. Fround yo answers to the nearest doinar. 2. Joumalize the a0justing entry tor each of the following accrued expenses at the end or the current year (refer to the Chart or Accounts for exact wording of account tites): A. Procuct warranty cost $20,500. B. Interest on the nhe remaining notes owed to Greenwood Co. Assume a soo-day year
