Homework Help is Here – Start Your Trial Now!
Business
Accounting
April 20 May 19 nased $40,250 of merchandise on ocust, terms n/30. Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. amount due on the note to Locust at the maturity date. amount due on the note to NBR Bank at the maturity date. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. August 17 Paid the November 5 Paid the November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8 %, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Tyrell Company Calculation of interest expense Total interest expense - Year 1 Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. August 17 - Locust note: Principal Interest rate Number of days' interest to be recorded in Year 1 Schedule of Calculation of Payables Interest $ Year 2 payment 0

April 20 May 19 nased $40,250 of merchandise on ocust, terms n/30. Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. amount due on the note to Locust at the maturity date. amount due on the note to NBR Bank at the maturity date. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. August 17 Paid the November 5 Paid the November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8 %, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Tyrell Company Calculation of interest expense Total interest expense - Year 1 Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. August 17 - Locust note: Principal Interest rate Number of days' interest to be recorded in Year 1 Schedule of Calculation of Payables Interest $ Year 2 payment 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Calculation of interest expenses

April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10 %, $35,000 note payable along with paying $5,250 in cash. Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. July 8 August 17 November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8 %, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Tyrell Company Calculation of interest expense Total interest expense - Year 1 August 17 - Locust note: Principal Interest rate Number of days' interest to be recorded in Year 1 Schedule of Payables Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. $ Calculation of Interest 0 Year 2 payment
Transcribed Image Text:April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10 %, $35,000 note payable along with paying $5,250 in cash. Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. July 8 August 17 November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8 %, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Tyrell Company Calculation of interest expense Total interest expense - Year 1 August 17 - Locust note: Principal Interest rate Number of days' interest to be recorded in Year 1 Schedule of Payables Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. $ Calculation of Interest 0 Year 2 payment
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-term liabilities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS