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The following ltems were selected from among the transactions completed by Sherwood Co. during the curtent year: Mar 1. Purchased merchandise on account from Kithwood Co0,5215,000, terms N/30 31 Issued a 30-day, 6% note for $215,000 to Kilhwood Co on account Apt 30 Paid Kirwood Co the amount oved on the note of March 31 Jun tuil 1 1. Borrowed $400,000 from Triple Creek Bank istuing a 45 - day. 89% note Purchased tools by issung a $60,000.60-doy note to Poulin co which discounted the note at the rate 016%. 16. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the kan by issing a new 30-day, 99 note for $400,000 (Journa ke both the debt and cied to the notes payable account) Aug 15 Paid Triple Creek Bank the amount due on the note of July 16 30. Paid Poulin Co the amount due on the note of July, 1 Dec 1 Purchased equipment from Greenvood Co for $320.000 paving $120.000 cain and issuing a series of ten 6% notes for $20.000 each corming oue at 30 -day intervals 22. Setfed a product liability lawsuit wath a customet for $5.000. payable in January Accrued the loss in a Itigation claims payable account 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 $400,000. (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. 30 Paid Poulin Co the amount due on the note of July 1. Dec 1 Purchased equipment from Greenwood Co for $320,000. paying $120,000 cash and issuipg a series of ten 6% notes for $20.000 each, coming due at 30 -day intervals 22 Setted a product liability tawsut with a customer for $50,000, 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 Required: 1. Joumaine the transactions Assume a 360 -day year 2 journaize the adjusting entry for each of the followny acctued expenses ar the end of the curcectyear: a. Product warranty cost $70,000. b. interest an the nine remaining nores owed to Greenwod co Assume es60-day yest

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