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., $396,000, terms n/30. 31 Issued a 30-day, 4% note for $396,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31 . Jun. 1 Borrowed $174,000 from Triple Creek Bank, Issuing a 45-day, 4\% note. Jul. 1 Purchased tools by issuing a $258,000,60-day note to Poulin Co., which discounted the note at the rate of 7% 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 $174,000. (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 Pald Poulin Co, the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $400,000, paying $114,000 cash and issuing a series of ten 4% notes for $28,600 each, coming due at 30 -day intervals. 22 Settied a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable account. 30-day, 6.5% note for $174,000. (Joumalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Croek Bank the amount due on the note of July 16. 30 Paid Poulln Co. the amount due on the note of July 1. Doc. 1 Purchasod equipment from Greenwood Co, for $400,000, paying $114,000 cash and issuing a series of ten 4% notes for $28,600 each, coming due at 30 -day intervals. 22 Settled a product llablity lawsut with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable aocount. 31 Paid the amount due to Greenwood Co, on the first note in the series issued on December 1. Required: 1. Journalze the transactions. Refor to the Chart of Accounts for exact wording of account twes. Assume a 360 -day year. Hound your answers to the nearest dollar. 2. Journalize the adfusting entry for each of the following accrued expenses at the end of the current year (reter to the Chart of Aocounts for exact wording of account tities): a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day yoar. 1. Joumalize the transactions. Fefer to the Chart of Accounts for exact wording of account bilies. Assume a 360-day yoar, Scroif down to access page 12 of the journal. Round your answors to the nearest dollar. 2. Joumalze the adjusting enty for each of the following accrued expenses at the ond of the current year froter to the Chart of Accounts for exact wording of account titios): A. Product warranty cost, $28,000 B. Interest on the nine remaining notes owod to Greenwood Co. Assume a s60-day yeac
