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.

CHART OF ACCOUNTS

Sherwood Co.

General Ledger

ASSETS

110 Cash

111 Accounts Receivable

112 Interest Receivable

113 Notes Receivable

115 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-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

227 Unfunded Pension Liability

228 Product Warranty Payable

229 Litigation Claims Payable

EQUITY

310 Common Stock

311 Retained Earnings

312 Dividends

313 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Goods 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 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.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1-29. I repeat 1-29.

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 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. Adjusting entries. 2-5