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., $144,000, terms n/30.
Mar. 17.	Issued a 60-day, 7% note for $144,000 to Hood Co., on account.
May 16.	Paid Hood Co. the amount owed on the note of March 17.
June 15.	Borrowed $170,400 from Acme Bank, issuing a 60-day, 8% 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 $170,400. (Journalize both the debit and credit to the notes payable account.)
Oct. 13.	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 $60,000, 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.

For a compound transaction, accounts should be listed largest to smallest.

Date	Account	Debit	Credit
Feb. 15	Accounts Payable - Hood Co.CashLitigation Claims PayableInventoryNotes Payable	fill in the blank 2
	Accounts Payable - Hood Co.CashInventoryNotes PayableOffice Equipment		fill in the blank 4
Mar. 17	Accounts Payable - Hood Co.CashInterest ExpenseInventoryNotes Payable	fill in the blank 6
	Accounts Payable - Hood Co.CashInventoryNotes PayableOffice Equipment		fill in the blank 8
May 16	Accounts Payable - Hood Co.Accounts Receivable - Hood Co.CashInventoryNotes Payable	fill in the blank 10	fill in the blank 11
	Accounts Payable - Hood Co.Accounts Receivable - Hood Co.CashInterest ExpenseInventory	fill in the blank 13	fill in the blank 14
	Accounts Payable - Hood Co.CashInterest ExpenseInventoryNotes Payable	fill in the blank 16	fill in the blank 17
June 15	Accounts PayableCashInterest ExpenseInventoryNotes Payable	fill in the blank 19
	Accounts PayableCashLitigation Claims PayableInventoryNotes Payable		fill in the blank 21
July 21	Accounts PayableCashInventoryNotes PayableTools	fill in the blank 23	fill in the blank 24
	Accounts PayableAccounts ReceivableCashInterest ExpenseOffice Equipment	fill in the blank 26	fill in the blank 27
	Accounts PayableCashInterest ExpenseNotes PayableTools	fill in the blank 29	fill in the blank 30
Aug. 14	Accounts PayableCashLitigation Claims PayableNotes PayableTools	fill in the blank 32	fill in the blank 33
	Accounts PayableCashInterest ExpenseLitigation Claims PayableTools	fill in the blank 35	fill in the blank 36
	Accounts ReceivableLitigation LossInventoryNotes PayableOffice Equipment	fill in the blank 38	fill in the blank 39
	Accounts PayableCashInventoryOffice EquipmentTools	fill in the blank 41	fill in the blank 42
Oct. 13	Accounts Payable - Acme BankAccounts Receivable - Hood Co.CashInventoryNotes Payable	fill in the blank 44	fill in the blank 45
	Accounts Payable - Acme BankAccounts Receivable - Hood Co.CashInterest ExpenseInventory	fill in the blank 47	fill in the blank 48
	Accounts Payable - Acme BankCashInterest ExpenseInventoryNotes Payable	fill in the blank 50	fill in the blank 51
Oct. 19	Accounts PayableCashLitigation Claims PayableInventoryNotes Payable	fill in the blank 53
	CashInterest ExpenseInventoryNotes PayableOffice Equipment		fill in the blank 55
Dec. 1	CashInterest ExpenseLitigation Claims PayableNotes PayableOffice Equipment	fill in the blank 57	fill in the blank 58
	Accounts PayableInterest ExpenseInventoryNotes PayableOffice Equipment	fill in the blank 60	fill in the blank 61
	CashInterest ExpenseInventoryOffice EquipmentTools	fill in the blank 63	fill in the blank 64
Dec. 12	CashInterest ExpenseLitigation Claims PayableLitigation LossNotes Payable	fill in the blank 66
	CashInterest ExpenseLitigation Claims PayableLitigation LossNotes Payable		fill in the blank 68
Dec. 31	Accounts Payable - Mountain Equipment Co.Accounts Receivable - Mountain Equipment Co.CashInventoryNotes Payable	fill in the blank 70	fill in the blank 71
	Accounts Payable - Mountain Equipment Co.Accounts Receivable - Mountain Equipment Co.CashInterest ExpenseInventory	fill in the blank 73	fill in the blank 74
	Accounts Payable - Mountain Equipment Co.CashInterest ExpenseInventoryNotes Payable	fill in the blank 76	fill in the blank 77

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $14,200; (b) interest on the nine remaining notes owed to Mountain Equipment Co.

Item	Account	Debit	Credit
a.	CashLitigation Claims PayableLitigation LossProduct Warranty ExpenseProduct Warranty Payable	fill in the blank 79
	CashLitigation Claims PayableLitigation LossProduct Warranty ExpenseProduct Warranty Payable		fill in the blank 81
b.	CashInterest ExpenseInterest PayableNotes PayableProduct Warranty Payable	fill in the blank 83
	CashInterest ExpenseInterest PayableProduct Warranty ExpenseProduct Warranty Payable		fill in the blank 85