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 $38,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 98-day, 8%, $35, eee note payable along with paying $3,500 in cash. July 8 Borrowed $51,000 cash from NBR Bank by signing a 120-day, 12%, $51,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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 naturity date. 2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.) Locust NBR Bank Fargo Bank Principal Rate %x %x % x Time Interest
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 $38,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 98-day, 8%, $35, eee note payable along with paying $3,500 in cash. July 8 Borrowed $51,000 cash from NBR Bank by signing a 120-day, 12%, $51,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 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 naturity date. 2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.) Locust NBR Bank Fargo Bank Principal Rate %x %x % x Time Interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Abhaliya
![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 $38,500 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 $3,500 in cash.
July 8 Borrowed $51,000 cash from NBR Bank by signing a 120-day, 12%, $51,000 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 $24,eee cash from Fargo Bank by signing a 60-day, 8%, $24,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
_?_
7
Paid the amount due on the note to Fargo Bank at the maturity date.
2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a
year.)
Locust
NBR Bank
Fargo Bank
Principal Rate
X
x
%
% x
Time
Interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54fafca2-4b19-42e1-b57a-4faba095a1ec%2F7b591c6c-d5de-4d42-9e6b-008285687df6%2F3ix13zk_processed.jpeg&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 $38,500 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 $3,500 in cash.
July 8 Borrowed $51,000 cash from NBR Bank by signing a 120-day, 12%, $51,000 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 $24,eee cash from Fargo Bank by signing a 60-day, 8%, $24,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
_?_
7
Paid the amount due on the note to Fargo Bank at the maturity date.
2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a
year.)
Locust
NBR Bank
Fargo Bank
Principal Rate
X
x
%
% x
Time
Interest
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