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., $225,000, terms 1/30, 31 issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account Apr 30 Paid Kirkwood Co, the amount owed on the note of March 31 Jun. 1 Jul 1 Borrowed $500.000 from Triple Creek Bank, issuing a 45-day, 6% note. Purchased tools by issuing a $60,000, 60-day note to Poulin Co., which discounted the note at the rate of 6% 16 Aug 15 30 Dec 1 Pald Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (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, Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and Issuing a series of ten 9% notes for $20,000 each.coming due at 30-day intervals Settied a product liability lawsuit with a customer for $40,000, payable in danuary, Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1 22 31 in Chart of Accounts 126 Accumulated Depreciation Office Equipment 127 Tools 128 Accumulated Depreciation Tools 532 Depreciation Expense-Office Equipment 533 Depreciation Expense-Tools 534 Insurance Expense 535 Supplies Expense 536 Payroll Tax Expense 537 Vacation Pay Expense 538 Pension Expense 539 Cash Short and Over 540 Product Warranty Expense 541 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable-Kirkwood Co. 211 Accounts Payable-Greenwood Co. 212 Accounts Payable-Poulin Co. 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 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 720 Litigation Loss nstructions Th Chart of Accounts wou wovun ruolo 20 buyuuu 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 Common Stock 311 Retained Earnings 312 Dividends Show Me How lity transactions Instruction Chart of Accounts Journal Journal JOURNAL ACCOUNTING EQUATION DESCRIPTION DET CRIBE POSTA TU BATE ASSETS EQUITY L hevos Sito Antero MacBook Air 30 1 $ 4 % 5 A 6 &7 3 8 9 0 E R T Y U O D F H K L L Instructions 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., $225.000, terms 1730. Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account 31 Apr. 30 Paid Kirkwood Co, the amount owed on the note of March 31. Jun. 1 Jul. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note. Purchased tools by issuing a $50,000, 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, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16, Aug 15 30 Paid Poulin Co. the amount due on the note of July 1. Dec 1 22 Purchased equipment from Greenwood Co. for $280.000, paying $80.000 cash and issuing a series of ten 9% notes for $20,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $40.000, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. 31 Shart of Accounts CHART OF ACCOUNTS Sherwood Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue 112 Interest Recelvable EXPENSES 113 Notes Receivable 115 Inventory 116 Supplies 510 Cost of Goods Sold 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation Building 125 Office Equipment 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 126 Accumulated Depreciation Office Equipment 532 Depreciation Expense-Office Equipment 533 Depreciation Expense-Tools 127 Tools 534 Insurance Finance 10 Animati Danman Tante actions Chart of Accounts 127 Tools 533 Depreciation Expense-Tools 128 Accumulated Depreciation Tools 534 Insurance Expense LIABILITIES 535 Supplies Expense 536 Payroll Tax Expense 537 Vacation Pay Expense 538 Pension Expense 539 Cash Short and Over 540 Product Warranty Expense 541 Miscellaneous Expense 710 Interest Expense 720 Litigation Loss 210 Accounts Payable Kirkwood Co. 211 Accounts Payable-Greenwood Co 212 Accounts Payable-Poulin Co. 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 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 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 Common Stock 311 Retained Earnings 312 Dividends Check My Work All work saved