The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year:

Feb. 15.	Purchased merchandise on account from Hood Co., $276,000, terms n/30.
Mar. 17.	Issued a 60-day, 6% note for $276,000 to Hood Co., on account.
May 16	Paid Hood Co. the amount owed on the note of March 17.
June 15.	Borrowed $139,200 from Acme Bank, issuing a 60-day, 7% note.
July 21.	Purchased tools by issuing a $72,000, 90-day note to Columbia Supply Co., which discounted the note at the rate of 8%.
Aug. 14.	Paid Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $139,200. (Journalize both the debit and credit to the notes payable account.)
Oct. 15.	Paid 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 issuing a series of ten 6% notes for $11,000 each, coming due at 30-day intervals.
Dec. 12.	Settled a product liability lawsuit with a customer for $80,000, payable in January. Emerald Bay accrued the loss in a litigation claims payable account.
Dec. 31.	Paid the amount due Mountain Equipment 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. If required, round to one decimal place.

Date	Account	Debit	Credit
Feb. 15	SelectAccounts Payable - Hood Co.CashLitigation Claims PayableMerchandise InventoryNotes PayableItem 1
	SelectAccounts Payable - Hood Co.CashMerchandise InventoryNotes PayableOffice EquipmentItem 3
Mar. 17	SelectAccounts Payable - Hood Co.CashInterest ExpenseMerchandise InventoryNotes PayableItem 5
	SelectAccounts Payable - Hood Co.CashMerchandise InventoryNotes PayableOffice EquipmentItem 7
May 16	SelectAccounts Payable - Hood Co.Accounts Receivable - Hood Co.CashMerchandise InventoryNotes PayableItem 9
	SelectAccounts Payable - Hood Co.Accounts Receivable - Hood Co.CashInterest ExpenseMerchandise InventoryItem 12
	SelectAccounts Payable - Hood Co.CashInterest ExpenseMerchandise InventoryNotes PayableItem 15
June 15	SelectAccounts PayableCashInterest ExpenseMerchandise InventoryNotes PayableItem 18
	SelectAccounts PayableCashLitigation Claims PayableMerchandise InventoryNotes PayableItem 20
July 21	SelectAccounts PayableCashMerchandise InventoryNotes PayableToolsItem 22
	SelectAccounts PayableAccounts ReceivableCashInterest ExpenseOffice EquipmentItem 25
	SelectAccounts PayableCashInterest ExpenseNotes PayableToolsItem 28
Aug. 14	SelectAccounts PayableCashLitigation Claims PayableNotes PayableToolsItem 31
	SelectAccounts PayableCashInterest ExpenseLitigation Claims PayableToolsItem 34
	SelectAccounts ReceivableLitigation LossMerchandise InventoryNotes PayableOffice EquipmentItem 37
	SelectAccounts PayableCashMerchandise InventoryOffice EquipmentToolsItem 40
Oct. 15	SelectAccounts Payable - Acme BankAccounts Receivable - Hood Co.CashMerchandise InventoryNotes PayableItem 43
	SelectAccounts Payable - Acme BankAccounts Receivable - Hood Co.CashInterest ExpenseMerchandise InventoryItem 46
	SelectAccounts Payable - Acme BankCashInterest ExpenseMerchandise InventoryNotes PayableItem 49
Oct. 19	SelectAccounts PayableCashLitigation Claims PayableMerchandise InventoryNotes PayableItem 52
	SelectCashInterest ExpenseMerchandise InventoryNotes PayableOffice EquipmentItem 54
Dec. 1	SelectCashInterest ExpenseLitigation Claims PayableNotes PayableOffice EquipmentItem 56
	SelectAccounts PayableInterest ExpenseMerchandise InventoryNotes PayableOffice EquipmentItem 59
	SelectCashInterest ExpenseMerchandise InventoryOffice EquipmentToolsItem 62
Dec. 12	SelectCashInterest ExpenseLitigation Claims PayableLitigation LossNotes PayableItem 65
	SelectCashInterest ExpenseLitigation Claims PayableLitigation LossNotes PayableItem 67
Dec. 31	SelectAccounts Payable - Mountain Equipment Co.Accounts Receivable - Mountain Equipment Co.CashMerchandise InventoryNotes PayableItem 69
	SelectAccounts Payable - Mountain Equipment Co.Accounts Receivable - Mountain Equipment Co.CashInterest ExpenseMerchandise InventoryItem 72
	SelectAccounts Payable - Mountain Equipment Co.CashInterest ExpenseMerchandise InventoryNotes PayableItem 75

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $14,300; (b) interest on the nine remaining notes owed to Mountain Equipment Co.

Item	Account	Debit	Credit
a.	SelectCashLitigation Claims PayableLitigation LossProduct Warranty ExpenseProduct Warranty PayableItem 78
	SelectCashLitigation Claims PayableLitigation LossProduct Warranty ExpenseProduct Warranty PayableItem 80
b.	SelectCashInterest ExpenseInterest PayableNotes PayableProduct Warranty PayableItem 82
	SelectCashInterest ExpenseInterest PayableProduct Warranty ExpenseProduct Warranty PayableItem 84