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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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