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

Jan.	10	Purchased merchandise on account from Beckham Co., $396,000, terms n/30.
Feb.	9	Issued a 30-day, 4% note for $396,000 to Beckham Co., on account.
Mar.	11	Paid Beckham Co. the amount owed on the note of February 9.
May	1	Borrowed $174,000 from Verity Bank, issuing a 45-day, 4% note.
June	1	Purchased tools by issuing a $258,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 7%.
	15	Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 6.5% note for $174,000. (Journalize both the debit and credit to the notes payable account.)
July	30	Paid Verity Bank the amount due on the note of June 15.
	30	Paid Rassmuessen Co. the amount due on the note of June 1.
Dec.	1	Purchased office equipment from Lambert Co. for $400,000, paying $114,000 and issuing a series of ten 4% notes for $28,600 each, coming due at 30-day intervals.
	15	Settled a product liability lawsuit with a customer for $311,500, payable in January. Shin accrued the loss in a litigation claims payable account.
	31	Paid the amount due Lambert Co. on the first note in the series issued on December 1.

Required:

1.

Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered):

a.	Product warranty cost, $28,000.
b.	Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year.

CHART OF ACCOUNTS Shin Co.General Ledger

	ASSETS
110	Cash
111	Accounts Receivable
112	Interest Receivable
113	Notes Receivable
115	Merchandise Inventory
116	Supplies
118	Prepaid Insurance
120	Land
123	Building
124	Accumulated Depreciation-Building
125	Office Equipment
126	Accumulated Depreciation-Office Equipment
127	Tools
128	Accumulated Depreciation-Tools

	LIABILITIES
210	Accounts Payable-Beckham Co.
211	Accounts Payable-Lambert Co.
212	Accounts Payable-Verity Bank
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
227	Unfunded Pension Liability
228	Product Warranty Payable
229	Litigation Claims Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
524	Depreciation Expense-Building
525	Delivery Expense
526	Repairs Expense
529	Selling Expenses
531	Rent Expense
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
720	Litigation Loss

1. Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.):

a.	Product warranty cost, $28,000.
b.	Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year.

PAGE 12

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5