The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. 30 Jun Jul. 2 1 Purchased merchandise on account from Kirkwood Co. $300,000, terms n/30. 31 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. 1 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 4% note. 1 Purchased tools by issuing a $228,000, 60-day note to Poulin Co. which discounted the note at the rate of 9%. 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.) Paid Triple Creek Bank the amount due on the note of July 16. 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 due to Greenwood Co. on the first note in the series issued on December 1. Aug 15 30 Dec 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, $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 titles. A 360-day year. Scroll down to access page 12 of the journal. Round your answers to the nearest de How does grading work? JOURNAL CREDIT ACTIM LIABILITE 1 300,000.00 1 . 300,000.00 1 1 DATE DESCRIPTION Mari Inventory Actunts Payable Kirkwood Co Mar 31 Accounts Payable-Grewood Ce Notes Payable Notes Payable Interest Expense 300,000.00 1 4 300,000.00 1 5 Apc 30 . 300,000.00 1.000.00 301.000.00 1 . 156.000.00 1 156.000.000 1 30 1 22458000 10000 31 12 lun 1 Cash Notes Payable Mr Tools Interest Expense Notes Payable lut 16 Notes Payable Interest Expense Notes Payable Cash 276.000.000 1 1 11 156.000.00 > 14 78000 35 156.000.00 1 780,00 ! 17 Aug 15 156.000.00 > 10 845.00 10 156.545.00 1 33 PR 200 m 1 21 12.300.00 1 32 580.000.000 1 21 Notes Payable Interest Expense Cash Aug 30 Notes Payable Cash Dec. Office Equipment Notes Payable Cash Dec. 27" Litigation Los Litigation Claims Payable Notes Payable Interest Expense Cash 1 473.000.000 102.000.000 24 1 35 300 500.00 36 300.500.00 1 27 Dec 31 1 2800.00 23900 28 20 13.050.00
