Bock Show Me How Liability Transactions The following items were selected from among the transactions completed by Emerald Bay Stores Co. dunno the current year: rebus. Purchased merchandise on account from Hood Co. $144,000, terms 1630. Mar 17. und 60 day, 6% note for $144,000 to Hood Co, on account. May 16. Paid Hood Co the amount owed on the note of March 12 June 15, Borrowed $138,000 from Acme Bank, kuing a 60 day, 7 note July 21. Purchased tools by nsuing a $114,000, 90-day note to Columbia Sopply Co which discounted the note at the rate of og 14 Pad Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60 day, 19 note for $138,000. Couale both the debit and credit to the notes payable account.) Oct 13 Pod Acme Bank the amount due on the note of August 14 Oct. 19. Paid Columbia Supply Co the amount due on the note of July 21 Dec. 1. Purchased office equipment from Mountain Equipment Co. for $132,000, paying $22,000 and suing a series of ten 0 notes for $11,000 each coming due at 30 day intervals Dec 12 settled s product liability lawsuit with a customer for 166,000, payable in January, Emerald Bay accrued the loss in a Mitigation dans payable account. Dec. 31. Paid the amount due Mountain Equipment Co. on the first note in the series issued on December 1 Required 1. Journals the transactions. If an amount box does not require an entry, leave it blank Assume a 360-day year For compound transaction, accounts should be listed largest to smallest Date Arrent Behit Credit Date Account Debit Credit Feb. 15 Inventory 144,000 Accounts Payable - Hood Co. 144,000 Mar. 17 Accounts Payable - Hood Co. 144,000 Notes Payable 144,000 May 16 Notes Payable 144,000 Interest Expense 1,440 Cash 145,440 June 15 Cash 138,000 Notes Payable 138,000 Duly 21 Tools Interest Expense III Notes Payable Aug. 14 Notes Payable 138,000 Interest Expense Book Show Me How uly 21 Tools Interest Expense Notes Payable Aug. 14 138,000 Notes Payable Interest Expense Notes Payable 138,000 Cash Oct. 13 Notes Payable Interest Expense Cash Oct. 19 Notes Payable Cash Dec. 1 Office Equipment Notes Payable Il Cash Check My Work eBook Show Me How Oct. 19 Notes Payable Cash Dec. 1 Office Equipment Notes Payable Cash Dec. 12 Litigation Loss III I III Litigation Claims Payable Dec. 31 Notes Payable Interest Expense Cash 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product notes owed to Mountain Equipment Co. Item Account Debit Credit Product Warranty Expense Product Warranty Payable a. Cash 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current yea notes owed to Mountain Equipment Co. Item Account Debit Credit a. Product Warranty Expense Product Warranty Payable b. Interest Expense Interest Payable Feedback Check My Work Consider why the note is being issued (for cash, merchandise other long