%24 ... Check my w [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $3,000 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $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. Nov. 28 Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 7%, $30,000 note payable. Dec. 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. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.) Year end accrual required for: Fargo Bank Principal Rate Time Interest %3D Interest to be recorded in Year 2 60/360 350 $4 X 000' SI of 11 Next > KƏld > ere to search 11 dy H.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Check my w
[The following information applies to the questions displayed below.]
Tyrell Co. entered into the following transactions involving short-term liabilities.
Year 1
Apr. 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying
$3,000 in cash.
July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $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.
Nov. 28 Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 7%, $30,000 note payable.
Dec. 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. (Do not round intermediate calculations and round your final answers to
nearest whole dollar. Use 360 days a year.)
Year end accrual required for:
Fargo Bank
Principal
Rate
Time
Interest
%3D
Interest to be recorded in Year 2
60/360
350
$4
X 000'
SI
of 11
Next >
KƏld >
ere to search
11
dy
H.
Transcribed Image Text:%24 ... Check my w [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $3,000 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $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. Nov. 28 Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 7%, $30,000 note payable. Dec. 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. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.) Year end accrual required for: Fargo Bank Principal Rate Time Interest %3D Interest to be recorded in Year 2 60/360 350 $4 X 000' SI of 11 Next > KƏld > ere to search 11 dy H.
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