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Solve the follwing problem. CHART OF ACCOUNTSSherwood Co.General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies
Solve the follwing problem.
CHART OF ACCOUNTSSherwood Co.General Ledger
ASSETS | |
---|---|
110 | Cash |
111 | Accounts Receivable |
112 | Interest Receivable |
113 | Notes Receivable |
115 | Inventory |
116 | Supplies |
118 | Prepaid Insurance |
120 | Land |
123 | Building |
124 | Accumulated Depreciation-Building |
125 | Office Equipment |
126 | Accumulated Depreciation-Office Equipment |
127 | Tools |
128 | Accumulated Depreciation-Tools |
LIABILITIES | |
---|---|
210 | Accounts Payable-Kirkwood Co. |
211 | Accounts Payable-Greenwood Co. |
212 | Accounts Payable-Poulin Co. |
213 | Interest Payable |
214 | Notes Payable |
215 | Salaries Payable |
216 | Social Security Tax Payable |
217 | Medicare Tax Payable |
218 | Employees Federal Income Tax Payable |
219 | Employees State Income Tax Payable |
220 | Group Insurance Payable |
221 | Bond Deductions Payable |
224 | Federal Unemployment Tax Payable |
225 | State Unemployment Tax Payable |
226 | Vacation Pay Payable |
227 | Unfunded Pension Liability |
228 | Product Warranty Payable |
229 | Litigation Claims Payable |
EQUITY | |
---|---|
310 | Common Stock |
311 | Retained Earnings |
312 | Dividends |
313 | Income Summary |
REVENUE | |
---|---|
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
---|---|
510 | Cost of Goods Sold |
520 | Salaries Expense |
524 | Depreciation Expense-Building |
525 | Delivery Expense |
526 | Repairs Expense |
529 | Selling Expenses |
531 | Rent Expense |
532 | Depreciation Expense-Office Equipment |
533 | Depreciation Expense-Tools |
534 | Insurance Expense |
535 | Supplies Expense |
536 | Payroll Tax Expense |
537 | Vacation Pay Expense |
538 | Pension Expense |
539 | Cash Short and Over |
540 | Product Warranty Expense |
541 | Miscellaneous Expense |
710 | Interest Expense |
720 | Litigation Loss |
Liability transactions
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. | 1 | Purchased merchandise on account from Kirkwood Co., $402,000, terms n/30. |
31 | Issued a 30-day, 4% note for $402,000 to Kirkwood Co., on account. | |
Apr. | 30 | Paid Kirkwood Co. the amount owed on the note of March 31. |
Jun. | 1 | Borrowed $186,000 from Triple Creek Bank, issuing a 45-day, 4% note. |
Jul. | 1 | Purchased tools by issuing a $246,000, 60-day note to Poulin Co., which discounted the note at the rate of 5%. |
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 $186,000. (Journalize 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. | |
Dec. | 1 | Purchased equipment from Greenwood Co. for $440,000, paying $120,000 cash and issuing a series of ten 8% notes for $32,000 each, coming due at 30-day intervals. |
22 | Settled a product liability lawsuit with a customer for $319,500, payable in January. Accrued the loss in a litigation claims payable account. | |
31 | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Required: | |||||
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1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your 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 titles):
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