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ems: Series A PR 10-1A Liability transactions Obi, 1,5 The following items were selected from among the transactions completed by Sherwood AL LEDGER during the current year: Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. 1. Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate fh June July 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% note for $400,000. (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. 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series ofe 9% notes for $22,000 each, coming due at 30-day intervals. Dec. 22. Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the los nt litigation claims payable account. 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Instructions 1. Journalize the transactions. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of te current year: A. Product warranty cost, $80,000. B. Interest on the nine remaining notes owed to Greenwood Co. Ob PR 10-2A Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained fro roll

ems: Series A PR 10-1A Liability transactions Obi, 1,5 The following items were selected from among the transactions completed by Sherwood AL LEDGER during the current year: Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. 1. Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate fh June July 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% note for $400,000. (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. 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series ofe 9% notes for $22,000 each, coming due at 30-day intervals. Dec. 22. Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the los nt litigation claims payable account. 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Instructions 1. Journalize the transactions. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of te current year: A. Product warranty cost, $80,000. B. Interest on the nine remaining notes owed to Greenwood Co. Ob PR 10-2A Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained fro roll

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 94PSB
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Chapter 10 Liabilities: Current, Installment Notes, Contingencies blems: Series A PR 10-1A Liability transactions Obj, 1,5 The following items were selected from among the transactions completed by Sherwood c during the current year: GENERAL LEDGER Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. June 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. July 1. Purchased tools by issuing a $45,000, 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% note for $400,000. (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. 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series ofter 9% notes for $22,000 each, coming due at 30-day intervals. Dec. 22. Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the lossint litigation claims payable account. 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Instructions 1. Journalize the transactions. 2. Journalize the adjusting entry for each of the following accrued expenses at the cie current year: A. Product warranty cost, $80,000. B. Interest on the nine remaining notes owed to Greenwood Co. PR 10-2A Entries for payroll and payroll taxes „ $61,476 the records of Boltz Co.: Deductions: $160,000 19,500 Salaries: Sales salaries $540,000 Income tax withheld
Transcribed Image Text:Chapter 10 Liabilities: Current, Installment Notes, Contingencies blems: Series A PR 10-1A Liability transactions Obj, 1,5 The following items were selected from among the transactions completed by Sherwood c during the current year: GENERAL LEDGER Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. June 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. July 1. Purchased tools by issuing a $45,000, 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% note for $400,000. (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. 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series ofter 9% notes for $22,000 each, coming due at 30-day intervals. Dec. 22. Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the lossint litigation claims payable account. 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Instructions 1. Journalize the transactions. 2. Journalize the adjusting entry for each of the following accrued expenses at the cie current year: A. Product warranty cost, $80,000. B. Interest on the nine remaining notes owed to Greenwood Co. PR 10-2A Entries for payroll and payroll taxes „ $61,476 the records of Boltz Co.: Deductions: $160,000 19,500 Salaries: Sales salaries $540,000 Income tax withheld
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