Liability Transactions The following items were selected from among the transactions completed by O'Donnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $144,000, terms n/30. Feb. 9. Issued a 30-day, 8% note for $144,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $164,400 from Tabata Bank, issuing a 45-day, 9% note. June 1. Purchased tools by issuing a $87,000, 60-day note to Gibala Co., which discounted the note at the rate of 7%. 15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $164,400. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15. 30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $144,000, paying $24,000 and issuing a series of ten 5% notes for $12,000 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for $81,000, payable in January. O'Donnel accrued the loss in a litigation claims payable account. 31. Paid the amount due Warick Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount. For a compound transaction, accounts should be listed largest to smallest. Date Account Debit Credit Jan. 10 Merchandise Inventory 144,000 Accounts Payable-Laine Co. 144,000 Feb. 9 Accounts Payable-Laine Co. 144,000 Notes Payable 144,000 Mar. 11 Notes Payable 144,000 Interest Expense 960 Cash 144,960 May 1 Cash 164,400 Notes Payable 164,400 June 1 Tools 70,920 Interest Expense 1,080 Notes Payable 72,000 June Notes Payable 112,860 15 Interest Expense 1,140 June Notes Payable 112,860 15 1,140 Interest Expense Notes Payable 114,000 Cash 1,742 July 30 Notes Payable 154,800 Interest Expense 1,355 Cash 156,155 July 30 Notes Payable 114,000 Cash 114,000 Dec. 1 Office Equipment 144,000 Notes Payable 120,000 Cash 24,000 Dec. Litigation Loss 64,000 15 Litigation Claims Payable 64,000 Dec. Notes Payable 12,000 31 Interest Expense 50 Cash 12,050 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current Assume a 360-day year. Round your answers to the nearest dollar amount. Item Debit Credit a. Account Product Warranty Expense Product Warranty Payable 14,500 14,500 b. Interest Expense 450 Interest Payable 450