70.2K

Verified Solution

Link Copied!

The following items were selected from among the trasnactions completed by shin co. during the current year:

he following items were selected from among the transactions completed by Shin Co. during the current year: Jan. 10 Purchased merchandise on account from Beckham Co., $402.000, terms n/30. Feb. 9 Issued a 30 -day, 4% note for $402,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $186.000 from Verity Bank, issuing a 45 -day, 4% note. June 1 Purchased tools by issuing a $246,000,60-day note to Rassmuessen Co., which discounted the note at the rate of 5%. 15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day. 6.5% note for $186,000. (Joumalize both the debit and credit to the notes payable account.) July 30 Paid Verity Bank the amount due on the note of June 15. 30 Paid Rassmuessen Co, the amount due on the note of June 1. Dec. 1 Purchased office equipment from Lambert Co. for $440,000, paying $120,000 and issuing a series of ten 8% notes for $32,000 each, coming due at 30 -day intervals. 15 Settled a product liability lawsuit with a customer for $319,500, 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. 1. Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Round your answers to the nearest dollar. 2. Joumalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the chart of accounts for the exact wording of the account tilles. CNOW joumals do not use lines for journal explanations. Every line on a joumal page is used for dobit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered): a. Product warranty cost, $29,000. b. Interest on the nine remaining notes owed to Lambert Co. Assume a 360-day year. All transactions on this page must be entered (except for past ref(s)) before you will receive Check My Work feedbock. a. Procuct warrany cost, $39000. b. Inverest on the nine remaining notes owed to Lambert Ca. Assume a sco-day your: Question not attempted

Answer & Explanation Solved by verified expert

See Answer