Journalize the transactions using given details

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Question: The following items were selected from among the transactions completed by Sherwood Co. during the current year:

Mar.1Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.31Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.Apr.30Paid Kirkwood Co. the amount owed on the note of March 31.Jun.1Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.Jul.1Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.16Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (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.1Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.22Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account.31Paid the amount due to Greenwood 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 answers to the nearest dollar.

Reference no: EM132746671

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