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The folowing items were selected from among the transactions completed by ODonnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine

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The folowing items were selected from among the transactions completed by ODonnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine C0, 5144,000 , terms N/30. Feb. 9. Issued a 30-day, 7\% 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 \$154, 600 from Tabata Bank, issuing a 45 -day, 8% note. June 1. Purchased tools by issuing a $81,000,60-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 $154,800. (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 $96,000, paying $16,000 and issuing a series of ten 5% notes for $8,000 each, coming due at 30 -day intervals: 15. Settled a groduct liability lawsuit with a customer for $75,000, payable in January. ODonnel acerued 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. Joumalize 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, accoun 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $16,600; (b) interest on the nine remaining notes owed to Warick Co. Assume a 360 -day year. Round your answers to the harest dollar amount

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