Instructions Mar. Apr. Jun. Jul. Aug. Dec. 1 Purchased merchandise on account from Kirkwood Co., $396,000,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Instructions Mar. Apr. Jun. Jul. Aug. Dec. 1 Purchased merchandise on account from Kirkwood Co., $396,000, terms n/30. Issued a 30-day, 4% note for $396,000 to Kirkwood Co., on account. 31 30 Paid Kirkwood Co. the amount owed on the note of March 31. 1 Borrowed $174,000 from Triple Creek Bank, issuing a 45-day, 4% note. 1 Purchased tools by issuing a $258,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $174,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. 15 30 Paid Poulin Co. the amount due on the note of July 1. 1 Purchased equipment from Greenwood Co. for $400,000, paying $114,000 cash and issuing a series of ten 4% notes for $28,600 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. 22 31 Required: 1. Journalize the transactions. Assume a 360-day year. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year. Instructions Mar. Apr. Jun. Jul. Aug. Dec. 1 Purchased merchandise on account from Kirkwood Co., $396,000, terms n/30. Issued a 30-day, 4% note for $396,000 to Kirkwood Co., on account. 31 30 Paid Kirkwood Co. the amount owed on the note of March 31. 1 Borrowed $174,000 from Triple Creek Bank, issuing a 45-day, 4% note. 1 Purchased tools by issuing a $258,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $174,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. 15 30 Paid Poulin Co. the amount due on the note of July 1. 1 Purchased equipment from Greenwood Co. for $400,000, paying $114,000 cash and issuing a series of ten 4% notes for $28,600 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $311,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. 22 31 Required: 1. Journalize the transactions. Assume a 360-day year. 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $28,000. b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.
Expert Answer:
Answer rating: 100% (QA)
1 Journalize the transactions Mar 1 Merchandise Inventory Dr 396000 Accounts Payable Kirkwood Co Cr ... View the full answer
Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1. Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30. 31....
-
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31....
-
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31....
-
The following trial balance is taken from the General Fund of the City of Jennings for the year ending December 31, 2017. Prepare a condensed statement of revenues, expenditures, and other changes in...
-
Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2010 are as follows. 1. Equipment...
-
For the airplane in Problem 16, calculate the rate of turn and time to make the 180 turn.
-
The test statistic F is never greater than 1. In Exercises 7 and 8, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
-
1. Document the effects of the GAAP differences in the 20F by doing the following: a. For the current year, calculate the percentage change for net income and for total shareholders equity indicated...
-
The Platinum Monthly Stock-Picker Chronicle ('Platinum') has been the best performed stock tipping service over the last 3 years, with Platinum subscribers being able to consistently (over the last 3...
-
Find and classify the stationary values of the function f(x, y) = sin x cos y + 2 cos x sin y in the range 0xm, x y 0syn. fxy 2 fxxfyy-fxy Type f(x,y)
-
The expected returns and standard deviation of returns for two securities are as follows: Security Z Security Y Expected Return 15% 35% Standard Deviation 20% 40% The correlation between the returns...
-
1. Make each of the following paragraphs more readable by opening each paragraph with a topic sentence. You may be able to find a topic sentence in the paragraph and move it to the beginning. In...
-
Assume that your small team comprises the officers in student government on your campus. You receive this email from the Dean of Students: Your team will be writing a report recommending what (if...
-
Assume your small team comprises your organizations Labor Management Committee. This email arrives from the CEO: Your team will be writing a response recommending the appropriate dress for employees...
-
Today, you get this request from a subordinate. You decide to grant the request. The following subject lines and messages are possible responses. How well does each subject line below meet the...
-
In response to complaints about childrens pools being left at the city dog park, the parks department sent the following email to those who had registered their dogs at the park: First, critique the...
-
elements You are given the following array consisting of 9 A = (536, 822, 16, 012, 357, 210, 216, 316, 450) (a) (5 points) Use Radix Sort to sort the sequence of elements in A. Show each step of your...
-
Make an argument that Williams had a right to delay the closing until after August 1.
-
The following items are reported on a companys balance sheet: Cash .....................................................................$225,000 Marketable securities...
-
IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions...
-
The following data were taken from Alvarado Companys balance sheet: a. Compute the ratio of liabilities to stockholders equity for each year. b. Has the creditors risk increased or decreased from...
-
The Private Securities Litigation Reform Act of 1995 and the U.S. Supreme Court's decision in Central Bank of Denver v. First Interstate Bank of Denver represent major victories in the profession's...
-
What are heuristics, and why are they of concern to auditors?
-
Identify and briefly explain management's financial statement assertions, and explain the relationship among assertions, audit objectives, and audit procedures.
Study smarter with the SolutionInn App