Journalize the transactions. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: Product warranty cost, $19,500. Interest on the nine remaining notes owed to Lambert Co.
The following items were selected from among the transactions completed by Shin Co. during the current year:
|
Jan. |
10. |
Purchased merchandise on account from Beckham Co., $420,000, terms n/30. |
|
Feb. |
9. |
Issued a 30-day, 6% note for $420,000 to Beckham Co., on account. |
|
Mar. |
11. |
Paid Beckham Co. the amount owed on the note of February 9. |
|
May |
1. |
Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. |
|
June |
1. |
Purchased tools by issuing a $312,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 5%. |
|
15. |
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.) |
|
|
July |
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. |
|
|
Dec. |
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. |
|
|
31. |
Paid the amount due Lambert Co. on the first note in the series issued on December 1. |
Instructions
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Journalize the transactions.
-
Journalize the
adjusting entry for each of the following accrued expenses at the end of the current year:-
Product warranty cost, $19,500.
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Interest on the nine remaining notes owed to Lambert Co.
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