InstructionsMar.Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30.131Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account.Apr.30Paid Kirkwood Co. the amount owed on the note of March 31.Jun.Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note.1Jul.1.Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the note at therate of 6%.16Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable account.)Aug.15Paid Triple Creek Bank the amount due on the note of July 16.30Paid Poulin Co. the amount due on the note of July 1.Dec.Purchased equipment from Greenwood Co. for $540,000, paying $108,000 cash and issuing a series often 4% notes for $43,200 each, coming due at 30-day intervals.22Settled a product liability lawsuit with a customer for $309,500, payable in January. Accrued the loss ina litigation claims payable account.31Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. 31Paid the amouht due to Greehwood Co. on the first note in the series issued on December 1.Required:1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answersto 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 forexact wording of account titles):a. Product warranty cost, $28,000.b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

1) Journal Entry Date Particulars Debit Credit Mar 1 Inventory 372,000 Accounts…

Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. Jul. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the not rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issui 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable ac 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 $540,000, paying $108,000 cash and issuing ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable in January. Accrued t a litigation claims payable account. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.

Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. Jul. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the not rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issui 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable ac 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 $540,000, paying $108,000 cash and issuing ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable in January. Accrued t a litigation claims payable account. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 6P: Prepare entries in general journal form to record the following: June 12Sold merchandise on account...

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