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1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount. For a compound transaction, accounts should be listed largest to smallest.

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $18,000; (b) interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. Round your answers to the nearest dollar amount.

Liability Transactions The following items were selected from among the transactions completed by Shin Co. during the current year: Jan. Purchased merchandise on account from Beckham Co., 10. $144,000, terms n/30. Issued a 30-day, 6% note for $144,000 to Beckham Co., on Feb. 9. account. Mar. Paid Beckham Co. the amount owed on the note of February 11. 9. Borrowed $144,000 from Verity Bank, issuing a 45-day, 7% May 1. note. June 1. Purchased tools by issuing a $87,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 8%. 15. Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $144,000. (Journalize both the debit and credit to the notes payable account.) July Paid Verity Bank the amount due on the note of June 15. 30. 30. Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Lambert Co. for $144,000, paying $24,000 and issuing a series of ten 5% notes for $12,000 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for $59,000, payable in January. Shin accrued the loss in a litigation claims payable account. 31. Paid the amount due Lambert Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount. For a compound transaction, accounts should be listed largest to smallest. Date Account Debit Credit Jan. 10 Feb. 9 Mar. 11 May 1 June 1 June 15 July 30 July 30 Dec. 1 Dec. 15 Dec. 31 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $18,000; (b) interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. Round your answers to the nearest dollar amount. Item Account Debit Credit a. b

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