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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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