The following items were selected from transactions completed by Sherwood Co. during the current year: Mar. 1
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Question:
The following items were selected from transactions completed by Sherwood Co. during the current year:
Mar. | 1 | Merchandise purchased on account of Kirkwood Co., $414,000, terms n/30. |
31 | Issued a $414,000 30-day 4% note to Kirkwood Co., on account. | |
Abr. | 30 | He paid Kirkwood Co. the amount due on the March 31 note. |
Jun. | 1 | Borrowed $180,000 from Triple Creek Bank, issuing a 45-day 4% note. |
Jul. | 1 | He purchased tools by issuing a $228,000 60-day note to the Poulin Co., which discounted the note at a rate of 6%. |
sixteen | You paid Triple Creek Bank the interest due on the June 1 note and renewed the loan by issuing a new 30-day note at 6.5% for $180,000. (Journal both the debit and credit to the document account payable). | |
Ago. | 15 | He paid Triple Creek Bank the amount due on the July 16 promissory note. |
30 | He paid the Poulin Co. the amount due on the July 1 note. | |
Dic. | 1 | He purchased equipment from Greenwood Co. for $520,000, paid $90,000 in cash, and issued a series of ten 4% notes for $43,000 each, maturing at 30-day intervals. |
22 | Settled a product liability claim with a customer for $315,000, payable in January. He accumulated the loss in a litigation claims payable account. | |
31 | He paid the amount owed to Greenwood Co. in the first note in the series issued on December 1. |
Required: | |||||
1. | Record transactions. Please refer to the Chart of Accounts for the exact wording of account titles. Assume a year of 360 days. Round your answers to the nearest dollar. | ||||
2. | Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
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Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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