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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Feb. 15. | Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. |
Mar. 17. | Issued a 60-day, 7% note for $144,000 to Kirkwood Co., on account. |
May 16. | Paid Kirkwood Co. the amount owed on the note of March 17. |
June 15. | Borrowed $136,800 from Triple Creek Bank, issuing a 60-day, 8% note. |
July 21. | Purchased tools by issuing a $114,000, 90-day note to Poulin Co., which discounted the note at the rate of 7%. |
Aug. 14. | Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $136,800. (Journalize both the debit and credit to the notes payable account.) |
Oct. 13. | Paid Triple Creek Bank the amount due on the note of August 14. |
Oct. 19. | Paid Poulin Co. the amount due on the note of July 21. |
Dec. 1. | Purchased office equipment from Greenwood Co. for $144,000, paying $24,000 cash and issuing a series of ten 6% notes for $12,000 each, coming due at 30-day intervals. |
Dec. 12. | Settled a product liability lawsuit with a customer for $76,000, payable in January. Accrued the loss in a litigation claims payable account. |
Dec. 31. | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Don't round the intermediate calculations.
For a compound transaction, accounts should be listed largest to smallest.
Date | Account | Debit | Credit |
---|---|---|---|
Feb. 15 | fill in the blank 2 | fill in the blank 3 | |
fill in the blank 5 | fill in the blank 6 | ||
Mar. 17 | fill in the blank 8 | fill in the blank 9 | |
fill in the blank 11 | fill in the blank 12 | ||
May 16 | fill in the blank 14 | fill in the blank 15 | |
fill in the blank 17 | fill in the blank 18 | ||
fill in the blank 20 | fill in the blank 21 | ||
June 15 | fill in the blank 23 | fill in the blank 24 | |
fill in the blank 26 | fill in the blank 27 | ||
July 21 | fill in the blank 29 | fill in the blank 30 | |
fill in the blank 32 | fill in the blank 33 | ||
fill in the blank 35 | fill in the blank 36 | ||
Aug. 14 | fill in the blank 38 | fill in the blank 39 | |
fill in the blank 41 | fill in the blank 42 | ||
fill in the blank 44 | fill in the blank 45 | ||
fill in the blank 47 | fill in the blank 48 | ||
Oct. 13 | fill in the blank 50 | fill in the blank 51 | |
fill in the blank 53 | fill in the blank 54 | ||
fill in the blank 56 | fill in the blank 57 | ||
Oct. 19 | fill in the blank 59 | fill in the blank 60 | |
fill in the blank 62 | fill in the blank 63 | ||
Dec. 1 | fill in the blank 65 | fill in the blank 66 | |
fill in the blank 68 | fill in the blank 69 | ||
fill in the blank 71 | fill in the blank 72 | ||
Dec. 12 | fill in the blank 74 | fill in the blank 75 | |
fill in the blank 77 | fill in the blank 78 | ||
Dec. 31 | fill in the blank 80 | fill in the blank 81 | |
fill in the blank 83 | fill in the blank 84 | ||
fill in the blank 86 | fill in the blank 87 |
![2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $16,600;
(b) interest on the nine remaining notes owed to Greenwood Co.
Item
Account
Debit
Credit
a.
Cash X
b.](https://content.bartleby.com/qna-images/question/1db5e1d6-96c0-4f13-980b-88dfeda69934/c243f4c7-c9d2-46bc-9189-168f60074c8d/8wzo37i_thumbnail.png)
Transcribed Image Text:2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $16,600;
(b) interest on the nine remaining notes owed to Greenwood Co.
Item
Account
Debit
Credit
a.
Cash X
b.
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