Determine the maturity date for each of the three notes described.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
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Tyrell Co. entered into the following transactions involving short-term liabilities.
Year 1
Apr. 20 Purchased $36,000 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 $1,000 in cash.
July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable.
note to Locust at the maturity date.
Paid the amount due on the
Paid the amount due on the
note to NBR Bank at the maturity date.
Nov. 28 Borrowed $33,000 cash fro Fargo Bank by signing a 60-day, 7%, $33,000 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.
Required:
1. Determine the maturity date for each of the three notes described.
Maturity date
Locust
NBR Bank
Fargo Bank](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdeef84b3-af72-4eb9-b463-579564ea0433%2Fff82e197-6373-48f0-a312-fd3573a28b95%2Flv8kewb_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 $36,000 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 $1,000 in cash.
July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable.
note to Locust at the maturity date.
Paid the amount due on the
Paid the amount due on the
note to NBR Bank at the maturity date.
Nov. 28 Borrowed $33,000 cash fro Fargo Bank by signing a 60-day, 7%, $33,000 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.
Required:
1. Determine the maturity date for each of the three notes described.
Maturity date
Locust
NBR Bank
Fargo Bank
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