Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following items were selected from among the transactions completed by ODonnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine

The following items were selected from among the transactions completed by ODonnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $414,000, terms n/30. Feb. 9. Issued a 30-day, 4% note for $414,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $180,000 from Tabata Bank, issuing a 45-day, 4% note. June 1. Purchased tools by issuing a $228,000, 60-day note to Gibala Co., which discounted the note at the rate of 6%. June 15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 6.5% note for $180,000. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15. July 30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $520,000, paying $90,000 and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. Dec 15. Settled a product liability lawsuit with a customer for 315,000, payable in January. ODonnel accrued the loss in a litigation claims payable account. Dec 31. Paid the amount due Warick 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: A. Product warranty cost, $26,500. B. Interest on the nine remaining notes owed to Warick Co. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.

image text in transcribed

image text in transcribed

Journal 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest dollar. PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Journal 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, $26,500. B. Interest on the nine remaining notes owed to Warick Co. Assume a 360-day year. PAGE 12 JOURNAL ACCOUNTING EQUATION DATE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION Adjusting Entries

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

Step: 3

blur-text-image

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

Statistical Analysis Microsoft Excel 2013

Authors: Conrad Carlberg

1st Edition

0789753111, 9780789753113

More Books

Students also viewed these Accounting questions

Question

Statistical regression: Were extreme groups used?

Answered: 1 week ago