The following items were selected from among the transactions completed by Shin Co. during the current year: Jan Feb. Mar May June 15 10 Purchased merchandise on account from Beckham Co., $420,000, terms /30. 9 Issued a 30-day, 6% note for $420,000 to Beckham Co., on account 11 Pald Beckham Co the amount owed on the note of February 9. 1 Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. 1 Purchased tools by issuing a $312,000, 60-day note to Rassmuessen Co, which discounted the note at the rate of 5% Paid Verity Bank the interest due on the note of May 1 and renewed the loan by Issuing a new 45-day, 7% note for $240,000. (Journalize both the debit and credit to the notes payable account.) 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. Purchased office equipment from Lambert Co. for $700,500 paying $160,500 and issuing a series of ten 5% notes for $54,000 each coming due at 30-day intervals. 15 Settled a product liability lawsuit with a customer for $144,200 payable in January, Shin accrued the loss in a litigation claims payable account Paid the amount due Lambert Co, on the first note in the series issued on December 1 July Dec 1 31 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 joumal 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. 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, $19,500. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. 1. Journalze the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW ournals do not use Nnes for journal explanations Every line on a Journal page is used for debitor credit entries, CNOW joumals 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. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POIST. REF DERIT CREDIT ASSETS LIABILITIES EQUITY 5 5 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 joumals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW Journals will automatically indent a credit erity when a credit amount is entered): a Product warranty cost. $19,500. . Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day your PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST, REE DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries 2 3 4
