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Mom's Chicken with Mushrooms, Celery & Sherry

1 chicken, boned & cut into 2" x 2" pieces     350 degree oven
flour                                          1 hour
salt 
pepper
oil

2 c. chopped celery (approx 1 head)
2 c. large sliced mushrooms (approx 1 lb.)
1 bay leaf
2 tbsp. flour
3/4 tsp. oregano
salt 
pepper
2 c. very dry sherry

boiled rice
toasted pignoli

Toss chicken in flour seasoned with salt & pepper. Fry in oil until golden. Sprinkle 2 tbsp. flour and spices over vegetables (salt & pepper to taste). Put all ingredients in large casserole or foil pan. Cover tightly and bake in 350 degree oven approximately 1 hour. If it appears too dry, add more sherry. Serve over rice with toasted pignoli.