In the current year, Sherwood Co. The following items were selected from the transactions carried out by:

Mar	1	Kirkwood Co. goods purchased on account, $396,000, terms n/30.
	31	He gave Kirkwood Co. a 30-day, 4% promissory note for $396,000 for the account.
April	30	He paid Kirkwood Co. his debt on the March 31 promissory note.
June	1	Borrowed $174,000 from Triple Creek Bank, issued a 45-day, 4% promissory note.
July	1	He purchased vehicles by issuing a 60-day note to Poulin Co. for $258,000, and the note was discounted 7%.
	16	He paid Triple Creek Bank the due interest on the June 1 note and renewed the loan by issuing a new 30-day, 6.5% note for $174,000. (Register both the debit and credit in the notes payable account.)
August	15	He paid Triple Creek Bank the amount on the July 16 promissory note.
	30	He paid Poulin Co. the amount due in the note dated July 1.
December	1	Purchased equipment from Greenwood Co. for $400,000, paid $114,000 in cash and issued a series of ten 4% promissory notes at $28,600 each, due 30 days apart.
	22	A product liability lawsuit was settled with a customer for $311,500 due in January. A lawsuit has accrued losses in the accounts receivables account.
	31	The amount due to Greenwood Co. was paid in the first promissory note in the series, published on December 1.

 Necessary

1. Log transactions. Assume a 360-day year.

2. Log the adjustment entry for each of the following accrued expenses at the end of the current year 

Product warranty cost, $28,000.

Interest on the remaining nine securities owed to Greenwood C. Consider the year as 360 days.

Answer rating: 100% (QA)

1 Logging Transactions Mar 1 Purchased goods from Kirkwood Co on account Accounts Payable Kirkwood Co 396000 Merchandise Inventory 396000 Mar 31 Issue... View the full answer