The 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$.,$ $$420,000,$ terms n$/30.$

Feb. $9$ Issued a $30-$day, $6\%$ note for $$420,000$ to Beckham Co$.,$ on account.

Mar. $11$ Paid Beckham Co$.$ the amount owed on the note of February $9.$

May $1$ Borrowed $$240,000$ from Verity Bank, issuing a $45-$day, $5\%$ note.

June $1$ Purchased tools by issuing a $$312,000,60-$day note to Rassmuessen Co$.,$ 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, $7\%$ note for $$240,000.($Journalize both the debit and credit to the notes payable account.$)$

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 $$700,500$ paying $$160,500$ and issuing a series of ten $5\%$ notes for $$54,000$ each, coming due at $30-$day intervals.

$15$ Settled a product liability lawsuit with a customer for $$144,200$ 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 $1.$

Required:

$1.$ 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.

$2.$ Journalize 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 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$)$:

a$.$ Product warranty cost, $$19,500.$

b$.$ Interest on the nine remaining notes owed to Lambert Co$.$ Assume a $360-$day year.