Required information [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 $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, 9%, $35,000 note payable along with paying $1,000 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 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 $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 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. 2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.)
Required information [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 $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, 9%, $35,000 note payable along with paying $1,000 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 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 $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 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. 2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[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 $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, 9%, $35,000 note payable along
with paying $1,000 in cash.
July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 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 $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 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.
2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final
answer to nearest whole dollar. Use 360 days a year.)
Principal
Rate
Time
Interest
Locust
% x
NBR Bank
% x
Fargo Bank](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2F95633fc9-3360-4003-83b1-c45a3d5a16a3%2F788kir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[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 $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, 9%, $35,000 note payable along
with paying $1,000 in cash.
July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 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 $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 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.
2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final
answer to nearest whole dollar. Use 360 days a year.)
Principal
Rate
Time
Interest
Locust
% x
NBR Bank
% x
Fargo Bank
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