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: 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): a. Product warranty cost, $29,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

1. Journalize the transactions. Rolor to the Chart of Accounts for exact wording of account titles. Assume a 360 day year. Scroll down to access page 12 of the joumal Round your answers to the norost dollar How does grading work? PAGE 11 JOURNAL Score: 313/360 ACCOUNTING EQUATION DESCRIPTION POST. REF CREDIT LIABILITIES EQUITY DATE Mar 1 Inventory ASSETS t DEBIT 402,000.00 2 402,000.00 1 Accounts Payable Kirkwood Co. Accounts Payable Kirkwood Co. 5 Mar. 31 402,000.00 1 4 Notes Payable 402,000.00 t 5 Apr 30 Notes Payable 402,000.00 1 Interest Expense 1,340.00 + Jun. Cash 403,340.00 Notes Payable 7,440.00 + Jul. 16 Tools 186,000.00 + 10 Interest Expense 243,950.00 + 11 Notes Payable 2.050.00 + Jul. 16 Notes Payable 246,000.00 1 Interest Expense 186,000.00 + Cash 930.00 1 15 Aug 15 SSSS 930.00 16 Notes Payable 186,000.00 1 Interest Expense 186,000.00 + 18 Cash 1,008,00 t 15 Notes Payable 187,008.00 1 20 Aug. 30 Notes Payable 246,000.00 1 21 Cash 246,000.00 + Dec 1 Office Equipment 440,000.00 1 23 Cash 120,000.00 1 Notes Payable 320,000.00 1 25 Dec 22 Litigation Loss 319,500.00 + 26 Litigation Loss payable 319,500.00 Dec 31 Notes Payable 32,000.00 1 28 Interest Expense 213.00 + Cash 32,213.00 + Points 59.99 / 69