Chapter 10 Liabilities: Current, Installment Notes, Contingencies ns: Series A Obj.1 PR 10-1A Liability transactions The following items were selected from among the transactions compl erms n/30. eted by wood Co, $175,000, t 75,000 to Kirkwood Co, on account. GER during the current year: Mar. 1. Purchased merchandise on account from Kirk 31, issued a 30-day, 6% note for $1 Apr. 30. Paid Kirkwood Co. the amount owed on the note of March 31. June 1, Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. July 1. Purchased tools by issuing a $45,000, 60-day note to Poulin Co, which discounted the note 16. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan byi ssuing a ne 30-day 6% note for $400,000 (Journalize both the debit and credit to the notes payable account 15. Paid Triple Creek Bank the amount due on the note of July 16. Aug. Paid Poulin Co. the amount due on the note of July 1. 9% notes for $22,000 each, coming due at 30-day intervals. litigation claims payable account. 30. Dec. 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a seri 22. Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the l 31. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1