Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following items were seiectod from among the transactions completed by Shin Co: during the current year: Jan. 10 Purchased merchandise on account trom Beckam

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following items were seiectod from among the transactions completed by Shin Co: during the current year: Jan. 10 Purchased merchandise on account trom Beckam Co., $390,000, terms r/30. Feb. 9 Issued a 30-day, 10\%, note for $390,000 to Beckham Co, on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $156,000 from Verity Bank, lssuing a 45-day, a\% note. June 1 Purchasod tools by issuing a $216,000,60-day note to fassmuessen Co., which discounted the note at the rate of 6%. 15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45 -day. 6.5% note for $156,000. (Joumalize both the debit and credit to the notes payable account.) July 30 Paid Verity Bank the ambunt due on the nole of June 15. 30 Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1 Purchased offce equipment from Lambert Co. for $500,000. paying $150,000 and issuing a series of ten 8% notes for $35,000 eech, coming due at 30 -day intervals. 15 Setled a product flablity lawsult with a customer for $310,000, payable in January. Shin accrued the loss in a lfigation claims payable account. 31 Paid the amount due Lambert Co. on the first note in the series issued on December 1 . the rate of 6% 15. Paid Verify Barik the interest due con the nole of May 1 and renewed the han by issuing a new 45diy. 6. 5+5 note for $166,000. (Joumal ze both the cedil and credt to the notes payable account.) 30 Paid Verity Bark the amount duan on tha note of June is. 30 Paid Rasamuessen Co, the arrount due on the nate of June 1 . Be0. 1 Puschased office equipment from Lambed Co. Hor $500,000, paying $150.000 and issiang a sories of ten bes notes for 3.95,000 each, coming tue at 30-day intervala. 15 Settsed a product liabsity lawbut with a custoner for 5910,000 , payable in January ghin aotried the loss in a litigation clairru payable sccount. 31 Pad the amouri due Lambert Co, on tho first note in tho series iseved oa December 1. ReGulredt 1. Joumalte the fransactions. Fetor to me chart of accounts for the exact wording of the account thes cNeW foumals do not use fines for journal explanations. Every kine on a joumal page is used for debi or crestr entries. CNOW/ joumels wil aufomaricaly indert a credit ontry when a crecil amount is enfered. Assume a 360 -day yeat. Found your answers fo the nearest dollar. 2. Joumstize the adiusting entry for each of the following socried expenaes at the end of the current year frefer to the chart of aceounts for the exact ivorbing of the account biles. CNOW joumats do not use anes for jouraal oxplanations. Every bhe on a joumal page is used for detal or 1*. Product warranty cost, 525,500 b. Interesf on the nine remaining nodes omod to Lambert Ca. Assume a Joo-day yoar. it of Accounts CHART OF ACCOUNTS Shin Co. General Ledger y Work 1 more Check My Work uses remaining. 1 more Check My Work uses remaining. In Chart of Accounts 215 Salaries Payable 710 Interest Expense 216 Social Security Tax Payable 720 Litigation Loss 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 Owner, Capital 311 Owner, Drawing Check My Work 1 more Check My Work uses remaining. Chart of Accounts 1 Journat more Check My Work uses remaining Check My Work If you were the borrower how much would you be leaving with in proceeds? What does the liablify always have to be recorded at

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions