4. Determine the interest expense recorded in Year 2. Note: Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Interest to be recorded in Year 2 Answer is complete but not entirely correct. Fargo Bank Principal $ 36,000 Rate Time 90/360 S Interest 3,260
4. Determine the interest expense recorded in Year 2. Note: Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Interest to be recorded in Year 2 Answer is complete but not entirely correct. Fargo Bank Principal $ 36,000 Rate Time 90/360 S Interest 3,260
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 20 Purchased $35,000 of merchandise on credit from Locust, terms n/30.
May 19
Replaced the April 20 account payable to Locust with a 90-day, 8 %, $35,000 note payable along with paying
$0 in cash.
July 8
Borrowed $66,000 cash from NBR Bank by signing a 120-day, 11%, $ 66,000 note payable.
Paid the amount due on the note to Locust at the maturity date.
Paid the amount due on the note to NBR Bank at the maturity date.
November 28 Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 6 %, $36,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
________ Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense recorded in Year 2.
Note: Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.
Year End Accrual Required For:
Interest to be recorded in Year 2
X Answer is complete but not entirely correct.
Fargo Bank
Principal x
$36,000 x
Rate
6✔ %
X
x
Time
90/360 =
=
Interest
S 3,260 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcca344af-066d-4451-8efd-e4129415e7be%2F8134a54b-08ee-4a1a-82f6-18549ae28e6d%2Feix9apc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 20 Purchased $35,000 of merchandise on credit from Locust, terms n/30.
May 19
Replaced the April 20 account payable to Locust with a 90-day, 8 %, $35,000 note payable along with paying
$0 in cash.
July 8
Borrowed $66,000 cash from NBR Bank by signing a 120-day, 11%, $ 66,000 note payable.
Paid the amount due on the note to Locust at the maturity date.
Paid the amount due on the note to NBR Bank at the maturity date.
November 28 Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 6 %, $36,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
________ Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense recorded in Year 2.
Note: Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.
Year End Accrual Required For:
Interest to be recorded in Year 2
X Answer is complete but not entirely correct.
Fargo Bank
Principal x
$36,000 x
Rate
6✔ %
X
x
Time
90/360 =
=
Interest
S 3,260 X
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