PR $10-1$A Liability Transactions Obj. $1,5$ 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$.,$ $$250,000,$ terms n$/30.31.$ Issued a $30-$day, $6\%$ note for $$250,000$ to Kirkwood Co$.,$ on account. Apr.$30.$ Paid Kirkwood Co$.$ the amount owed on the note of March $31.$ June $1.$ Borrowed $$500,000$ from Triple Creek Bank, issuing a $45-$day, $8\%$ note. July $1.$ Purchased tools by issuing a $$80,000,60-$day note to Poulin Co$.,$ which discounted the note$$at the rate of $6\%.16.$ Paid Triple Creek Bank the interest due on the note of June $1$ and renewed the loan by $$issuing a new $30-$day, $9\%$ note for $$500,000.($Journalize both the debit and credit to the$$notes payable account.$)$ Aug. $15.$Paid Triple Creek Bank the amount due on the note of July $16.$Paid Poulin Co$.$ the amount due on the note of July $1.$ Dec. $1.$ Purchased equipment from Greenwood Co$.$ for $$350,000,$ paying $$150,000$ cash and$$issuing a series of ten $6\%$ notes for $$20,000$ each, coming due at $30-$day intervals. $22.$Settled a product liability lawsuit with a customer for $$60,000,$ payable in January. Accrued $$the loss in a litigation claims payable account. $31.$Paid the amount due to Greenwood Co$.$ on the first note in the series issued on December$1.$ Instructions Journalize the transactions. Round computations to the nearest dollar. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: Product warranty cost, $$80,000.$ Interest on the nine remaining notes owed to Greenwood Co$.$ Round computation to the nearest dollar.