The following items were selected from transactions completed by the O'Donnel Co. during the current year:

January 10.	Merchandise purchased on account of Laine Co., $144,000, terms n/30.
February 9.	Issued a 30-day 6% note for $144,000 to Laine Co., on account.
March 11th.	He paid Laine Co. the amount due on the February 9 note.
Mayo 1.	He lent $142,800 from Tabata Bank, issuing a 7% 45-day note.
June 1st.	He purchased tools by issuing a 60-day $81,000 promissory note to Gibala Supply Co., which discounted the promissory note at a rate of 8%.
15.	It paid Tabata Bank the interest due on the May 1 note and renewed the loan by issuing a new 45-day 7% note for $142,800. (Journal both the debit and credit to the notes payable account.)
July 30.	He paid Tabata Bank the amount due on the June 15 note.
30	He paid Gibala Co. the amount due on the June 1 note.
December 1st.	Purchased office equipment from Warick Co. for $96,000, paid $16,000, and issued a series of ten 5% notes for $8,000 each, maturing at 30-day intervals.
15.	Settled a product liability claim with a customer for $78,000, payable in January. O'Donnel accumulated the loss in a litigation claims payable account.
31	He paid the amount due to Warick Co. in the first note in the series issued on December 1.

Required:

1. Journalize transactions. If a quantity box does not require an entry, leave it blank. Assume a year of 360 days. Do not round intermediate estimates and round final answers to the nearest dollar amount.

For a compound transaction, the accounts must be listed from largest to smallest.

Date	Account	Debit	Credit
January 10	Accounts Payable - Laine Co.
	Accounts Payable - Laine Co.
February 9	Accounts Payable - Laine Co.
	Pay
March 11th	Pay
	Interest expenses
	Money
Mayo 1	Money
	Pay
June 1	Tools
	Interest expenses
	Pay
June, 15	Litigation Claims Payable
	Money
	Pay
	Money
July 30	Pay
	Interest expenses
	Money
July 30	Pay
	Money
December 1st	Office team
	Pay
	Money
December 15	Litigation Claims Payable
	Litigation Claims Payable
December 31	Pay
	Interest expenses
	Money

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $15,300; (b) interest on the remaining nine notes owed to Warick Co. Assume a 360-day year. Round your answers to the nearest dollar amount.

Article	Account	Debit	Credit
a.	Product warranty expenses
	Product warranty to pay
b.	Interest expenses
	interest to pay

Answer rating: 100% (QA)

Transaction Journal Entries Date Account Debit Credit January 10 Accounts Payable Laine Co 144000 In... View the full answer