Accounting 1A Class Notes and Classwork Chapter 10 - Liabilities: Current, Installment Notes and Contingencies The following items were selected from among the transactions completed by Aston Martin Inc. Apr. 15 Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1 Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15 Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) Jul. 14 Paid Audi Company the amount due on the note of May 15. Aug. 16 Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sep 15 Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28 Paid Spyder Manufacturing Co the amount due on the note of May 1. 30 Paid Exige Co the amount owed on the note of September 15. Nov. 16 Purchased store equipment from Gallardo Co, for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 45-day intervals. Dec. 16 Paid the amount due Gallardo Co, on the first note in the series issued on Nov. 16. 28 Settled a personal injury lawsuit with a customer for $87,500, to be paid in January Aston Martin Inc. accrued the loss in a litigation claims payable account. Journalize the transactions. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year A. Product warranty cost, $26,800. B. Interest on the 19 remaining notes owed to Gallardo Co. Assume a 360-day year. 1. 2. Account Classification Account Name Type Normal Balance Financial Statement