The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. Jun. Jul. Aug. Dec. 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. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Borrowed $174,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $258,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 1 1 16 15 30 1 22 31 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. (Joumalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Paid Poulin Co. the amount due on the note of July 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. Settled a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. 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 exact wording of account titles): a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. Jun. Jul. Aug. Dec. 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. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Borrowed $174,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $258,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 1 1 16 15 30 1 22 31 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. (Joumalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Paid Poulin Co. the amount due on the note of July 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. Settled a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. 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 exact wording of account titles): a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
the first journal goes up to 29 not 7
Transcribed Image Text:1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account es. Assume a 360-day year. Scroll down to access page 12 of the journal. Round your
answers to the nearest dollar
DATE
DESCRIPTION
DATE
DESCRIPTION
JOURNAL
Adjusting Entries
POST EX
JOURNAL
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 exact
wording of account es):
A Product warranty cost $28,000.
B. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year
DEMIT
POST, MET
CREDIT
DENT
CREDIT
PAGE 11
ACCOUNTING EQUATION
LIABILITIES EQUITY
PAGE 12
ACCOUNTING EQUATION
EQUITY
Transcribed Image Text:The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar.
Apr.
Jun.
Jul.
Aug-
Dec.
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.
30 Paid Kirkwood Co. the amount owed on the note of March 31.
1
Borrowed $174,000 from Triple Creek Bank, issuing a 45-day, 4% note.
1
Purchased tools by issuing a $258,000, 60-day note to Poulin Co., which discounted the note at the
rate of 7%.
16
15
30
1
22
31
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. (Joumalize both the debit and credit to the notes payable account.)
Paid Triple Creek Bank the amount due on the note of July 16.
Paid Poulin Co. the amount due on the note of July 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.
Settled a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in
a litigation claims payable account.
Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to
the nearest dollar.
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 exact
wording of account titles):
a. Product warranty cost, $28,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education