The following items were selocled 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. Fob. 9 Issued a 30-day, 4ni note for 5300,000 to Beckham Co, on account Mar. 11 Padd beckham Co, the amount owed on the note of February 9. May 1 Borrowed 5174,000 trom Verily Bark, issuing a 45-day, 4N note. June 1 Purchaced tools by issuing a $256,000, 60-day note to Fassmuessen Co, which discounted the note at the rate of 7%. 15 Paid Verity Bank the intesest due on the note of May 1 and renewed the ioan by issuing a new 45-day, 6.5\% note for $174,000. (Joumalize both the dabir and credt to the notes payable account.) July 30 Paid Vority Bank the anourt due on the note of June 15. 30. Paid Rassmuessen Co, the amount due on the note of Jane 1. Dec. 1 Purchased office equipment trom Lambert Co. for $400,000, paying $114,000 and issuing a secies of Ien 4% notos for $29,600 each, coening due at 30 -day intervals. 15. Setlled a product lisblity lawsut with a customer for $311,500, payable in January, Shin accrued the loss in a inigation clains payabie account. 31. Paid the amount due Lambert Co. on the frst note in the sories issued on December 1. Aequired: 1. Joumasize the transactions. Aofor to the chart of accounts for the exact wording of the account tices. CNowjoumals bo nor use lines for the rate of 7% 15 Paid Verily Bank the interest due on the note ot May 1 and renewed the loun by issuing a now 45 -day. 6.5\% note for $174,000. (Joumalize both the debit and credi to the notos payable account) Jhily 30 Paid Verity Bank the amount due on the note of June 15 . 30 Paid Rassmuessen Co. the amount doe on the note of June 1. Dec. 1 Purchased office equipment from Lainbert Co, for $400,000, paying $114,000 and issuing a serfes of ten 4% notes for $28.600 each, coming doe at 30-day intervals. 15 Setted a product liability lawsuit with a cuitomer for $311,500, payablo in Jarescy, Shin acorued the loss in a litigation claims payable acoount. 31 Paid the amount dus Lambert Co. on the trst note in the suries issued on Decomber 1. Required: 1. Joumalke the transactions. Poder to the chart of acoounts for the exact wording of tho accocint netes. CNow joumals do nor use ands for joumal explanations: Every line on a joumal page is used for debit or credt entries. CNOW joumals will automaticany indent a credit entyy when a credit amount is ertheved Assume a 360-day year, Round your answers to the nearest dollar: 2. Joumatle the acyysring entry for each of the following aconued exponsed at the end of she curront year (refer so the chart of acctunts for the exact wording of the acpount files. CNOW journals do not use lines for joumal explanations. Every inne on a journal page is used far dobv or credit entries, CNOW joumals ww actomabically indont a credit entry when a credit amount is enterood:- a. Product wartandy cost, $28,000. b. Interest an the nine remaining notes owed to Lambert Co. Assume a sho-dlay year
