| Apr. 15. | Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. |
| May 1. | Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. |
| 15. | Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) |
| July 14. | Paid Audi Company the amount due on the note of May 15. |
| Aug. 16. | Purchased merchandise on account from Exige Co., $90,000, terms, n/30. |
| Sept. 15. | Issued a 45-day, 6% note for $90,000 to Exige Co., on account. |
| Oct. 28. | Paid Spyder Manufacturing Co. the amount due on the note of May 1. |
| 30. | Paid Exige Co. the amount owed on the note of September 15. |
| Nov. 16. | Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. |
| Dec. 16. | Paid the amount due Gallardo Co. on the first note in the series issued on November 16. |
| 28. Required: For a compound transaction, accounts should be listed largest to smallest. 1. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year. | Date | Account | Debit | Credit | | Apr. 15 | Cash | | | | | Notes Payable | | | | | | May 1 | Equipment | | | | | Interest Expense | | | | | Notes Payable | | | | | | May 15 | Notes Payable | | | | | Interest Expense | | | | | Notes Payable | | | | | Cash | | | | | | July 14 | Notes Payable | | | | | Interest Expense | | | | | Cash | | | | | | Aug. 16 | Inventory | | | | | Accounts Payable - Exige Co. | | | | | | Sept. 15 | Accounts Payable - Exige Co. | | | | | Notes Payable | | | | | | Oct. 28 | Notes Payable | | | | | Cash | | | | | | Oct. 30 | Notes Payable | | | | | Interest Expense | | | | | Cash | | | | | | Nov. 16 | Store Equipment | | | | | Notes Payable | | | | | Cash | | | | | | Dec. 16 | Notes Payable | | | | | Interest Expense | | | | | Cash | | | | | | Dec. 28 | Litigation Loss | | | | | Litigation Claims Payable | | | 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $26,800. b. Interest on the 19 remaining notes owed to Gallardo Co. | Item | Account | Debit | Credit | | a. | Product Warranty Expense | | | | | Product Warranty Payable | | | | | | b. | Interest Expense | | | | | Interest Payable | | Can you please break this down in simplest form. | | Settled a personal injury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc. accrued the loss in a litigation claims payable account. |
