Liability TransactionsThe following items were selected from among the transactions completed by Aston Martin Inc. during the current year: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.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. Required:For a compound transaction, accounts should be listed largest to smallest.1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. DateAccountDebitCreditApr. 15 fill in the blank 2fill in the blank 3 fill in the blank 5fill in the blank 6 May 1 fill in the blank 8fill in the blank 9 fill in the blank 11fill in the blank 12 fill in the blank 14fill in the blank 15 May 15 fill in the blank 17fill in the blank 18 fill in the blank 20fill in the blank 21 fill in the blank 23fill in the blank 24 fill in the blank 26fill in the blank 27 July 14 fill in the blank 29fill in the blank 30 fill in the blank 32fill in the blank 33 fill in the blank 35fill in the blank 36 Aug. 16 fill in the blank 38fill in the blank 39 fill in the blank 41fill in the blank 42 Sept. 15 fill in the blank 44fill in the blank 45 fill in the blank 47fill in the blank 48 Oct. 28 fill in the blank 50fill in the blank 51 fill in the blank 53fill in the blank 54 Oct. 30 fill in the blank 56fill in the blank 57 fill in the blank 59fill in the blank 60 fill in the blank 62fill in the blank 63 Nov. 16 fill in the blank 65fill in the blank 66 fill in the blank 68fill in the blank 69 fill in the blank 71fill in the blank 72 Dec. 16 fill in the blank 74fill in the blank 75 fill in the blank 77fill in the blank 78 fill in the blank 80fill in the blank 81 Dec. 28 fill in the blank 83fill in the blank 84 fill in the blank 86fill in the blank 87 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. ItemAccountDebitCredita. fill in the blank 89fill in the blank 90 fill in the blank 92fill in the blank 93 b. fill in the blank 95fill in the blank 96 fill in the blank 98fill in the blank 99

Question

Liability TransactionsThe following items were selected from among the transactions completed by Aston Martin Inc. during the current year: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.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. Required:For a compound transaction, accounts should be listed largest to smallest.1.  Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. DateAccountDebitCreditApr. 15 fill in the blank 2fill in the blank 3  fill in the blank 5fill in the blank 6 May 1 fill in the blank 8fill in the blank 9  fill in the blank 11fill in the blank 12  fill in the blank 14fill in the blank 15 May 15 fill in the blank 17fill in the blank 18  fill in the blank 20fill in the blank 21  fill in the blank 23fill in the blank 24  fill in the blank 26fill in the blank 27 July 14 fill in the blank 29fill in the blank 30  fill in the blank 32fill in the blank 33  fill in the blank 35fill in the blank 36 Aug. 16 fill in the blank 38fill in the blank 39  fill in the blank 41fill in the blank 42 Sept. 15 fill in the blank 44fill in the blank 45  fill in the blank 47fill in the blank 48 Oct. 28 fill in the blank 50fill in the blank 51  fill in the blank 53fill in the blank 54 Oct. 30 fill in the blank 56fill in the blank 57  fill in the blank 59fill in the blank 60  fill in the blank 62fill in the blank 63 Nov. 16 fill in the blank 65fill in the blank 66  fill in the blank 68fill in the blank 69  fill in the blank 71fill in the blank 72 Dec. 16 fill in the blank 74fill in the blank 75  fill in the blank 77fill in the blank 78  fill in the blank 80fill in the blank 81 Dec. 28 fill in the blank 83fill in the blank 84  fill in the blank 86fill in the blank 87 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. ItemAccountDebitCredita. fill in the blank 89fill in the blank 90  fill in the blank 92fill in the blank 93 b. fill in the blank 95fill in the blank 96  fill in the blank 98fill in the blank 99

Accepted Answer

Journal entries form the basis for other accounting tasks such as ledger account preparation, trial…

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.	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.

Date	Debit	Credit
Apr. 15	fill in the blank 2	fill in the blank 3
	fill in the blank 5	fill in the blank 6

May 1	fill in the blank 8	fill in the blank 9
	fill in the blank 11	fill in the blank 12
	fill in the blank 14	fill in the blank 15

May 15	fill in the blank 17	fill in the blank 18
	fill in the blank 20	fill in the blank 21
	fill in the blank 23	fill in the blank 24
	fill in the blank 26	fill in the blank 27

July 14	fill in the blank 29	fill in the blank 30
	fill in the blank 32	fill in the blank 33
	fill in the blank 35	fill in the blank 36

Aug. 16	fill in the blank 38	fill in the blank 39
	fill in the blank 41	fill in the blank 42

Sept. 15	fill in the blank 44	fill in the blank 45
	fill in the blank 47	fill in the blank 48

Oct. 28	fill in the blank 50	fill in the blank 51
	fill in the blank 53	fill in the blank 54

Oct. 30	fill in the blank 56	fill in the blank 57
	fill in the blank 59	fill in the blank 60
	fill in the blank 62	fill in the blank 63

Nov. 16	fill in the blank 65	fill in the blank 66
	fill in the blank 68	fill in the blank 69
	fill in the blank 71	fill in the blank 72

Dec. 16	fill in the blank 74	fill in the blank 75
	fill in the blank 77	fill in the blank 78
	fill in the blank 80	fill in the blank 81

Dec. 28	fill in the blank 83	fill in the blank 84
	fill in the blank 86	fill in the blank 87

Item	Debit	Credit
a.	fill in the blank 89	fill in the blank 90
	fill in the blank 92	fill in the blank 93

b.	fill in the blank 95	fill in the blank 96
	fill in the blank 98	fill in the blank 99