structions The following items were selected from among the transactions completed by Sherwood Co. during the current year. Mar. 1 31 Apr. Jun. 30 1 Purchased merchandise on account from Kirkwood Co., $300,000, terms 1/30. Issued a 30-day, 4% note for $300,000 to Kirkwood Co., on account. Paid Kirkwood Co. the amount owed on the note of March 31 Borrowed 5156,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the rate of 9% Aug Dec 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 $156,000. (Journalize both the debit and credit to the notes payable account) 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 1 Purchased equipment from Greenwood Co. for $580,000 paying $102,000 cash and issuing a series of ten 6% notes for $47.800 each, coming due at 30-day intervals 22 Settled a product liability lawsuit with a customer for $300.500 payable in January. Accrued the loss in a litigation claims payable account ! 31 Paid the amount dua to Greenhood Co on the first note in the series issued on December clue UI JUI 1. 1 22 Purchased equipment from Greenwood Co. for $580,000, paying $102,000 cash and issuing a series of ten 6% notes for $47 800 each, coming due at 30-day intervals Settled a product liability lawsuit with a customer for $300,500 payable in January. Accrued the loss in a litigation claims payable account Paid the amount due to Greenwood Co. on the first note in the series issued on December 1 31 Required: 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): a Product warranty cost $28.000 b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year 1. Journalize the transactions Refer to the Chart of Accounts for exact wording of account tres Assume a 360-day year Scroll down to access page 12 of the journal Round your answers to the arealdelar JOURUL ACCOUNTING COUMATION ASSETS S EQUITY we HOW Cacao Punem 2. Journalte 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 Product warranty cost $28.000 B interest on tein romaning notes Owed to Greenwood Co Assume a 300 dayyan wording of account titles): A Product warranty cost $28,000. B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year PAGE 1 JOURNAL ACCOUNTING EQUATION DESCRIPTION ASSETS LIABILITIES EQUITY Adjusting Entries Chart of Accounts General Ledger REVENUE ASSETS 110 Cash 410 Sales 610 Interest Revenue 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 115 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Otice Equipment 126 Accumulated Depreciation Omice Equipment 127 Tools 128 Accumulated Depreciation Tools EXPENSES 510 Cost of Goods Sold 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Soling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Depreciation Expense-Tools 534 Insurance Expense 535 Sunne France of Accounts ICCOUNT 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 7.10 Interest Expense 720 Litigation Loss 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 Pavable Chp 10 HUN WIR Chart of Accounts 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