Required information Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1 [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 $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 $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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. Problem 11-1A (Algo) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Interest to be accrued in Year 1 Principal x Fargo Bank Rate % x Time = Interest
Required information Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1 [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 $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 $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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. Problem 11-1A (Algo) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Interest to be accrued in Year 1 Principal x Fargo Bank Rate % x Time = Interest
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13P: Notes Receivable Transactions The following notes receivable transactions occurred for Harris...
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Required information
Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1
[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 $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 $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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.
Problem 11-1A (Algo) Part 3
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.
Year End Accrual Required For:
Interest to be accrued in Year 1
Principal X
Fargo Bank
Rate
%
X
Time
= Interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33f9e073-3e9d-45e7-9769-0e36879d4a1f%2Febb92fa4-8686-46da-bfc1-f755aff3aaa2%2F8q3ymer_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1
[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 $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 $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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.
Problem 11-1A (Algo) Part 3
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.
Year End Accrual Required For:
Interest to be accrued in Year 1
Principal X
Fargo Bank
Rate
%
X
Time
= Interest
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