The following items were selected from among the transactions completed by Sherwood Co. during the current year:

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.

Mar.1 Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.

31 Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.

Apr.30 Paid Kirkwood Co. the amount owed on the note of March 31.

Jun.1 Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.

Jul.1 Purchased tools by issuing a $270,000, 60-day note 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 $198,000. (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 $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.

22 Settled a product liability lawsuit with a customer for $320,000, 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.

CHART OF ACCOUNTSSherwood Co.General Ledger

ASSETS 110Cash111Accounts Receivable112Interest Receivable113Notes Receivable115Inventory116Supplies118Prepaid Insurance120Land123Building124Accumulated Depreciation-Building125Office Equipment126Accumulated Depreciation-Office Equipment127Tools128Accumulated Depreciation-Tools

LIABILITIES 210Accounts Payable-Kirkwood Co.211Accounts Payable-Greenwood Co.212Accounts Payable-Poulin Co.213Interest Payable214Notes Payable215Salaries Payable216Social Security Tax Payable217Medicare Tax Payable218Employees Federal Income Tax Payable219Employees State Income Tax Payable220Group Insurance Payable221Bond Deductions Payable224Federal Unemployment Tax Payable225State Unemployment Tax Payable226Vacation Pay Payable227Unfunded Pension Liability228Product Warranty Payable229Litigation Claims Payable

EQUITY 310Common Stock311Retained Earnings312Dividends

REVENUE 410Sales610Interest Revenue

EXPENSES 510Cost of Goods Sold520Salaries Expense524Depreciation Expense-Building525Delivery Expense526Repairs Expense529Selling Expenses531Rent Expense532Depreciation Expense-Office Equipment533Depreciation Expense-Tools534Insurance Expense535Supplies Expense536Payroll Tax Expense537Vacation Pay Expense538Pension Expense539Cash Short and Over540Product Warranty Expense541Miscellaneous Expense710Interest Expense720Litigation Loss