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 $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. July 8 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. 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 __?___ Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Interest to be recorded in Year 2 Principal X Rate Fargo Bank x % x Time = = Interest
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 $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. July 8 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. 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 __?___ Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Interest to be recorded in Year 2 Principal X Rate Fargo Bank 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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![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 $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.
July 8
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.
?
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
_?___ Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense recorded in Year 2. (Do not round your intermediate calculations. Use 360 days a year.)
Year End Accrual Required For:
Interest to be recorded in Year 2
Principal X
Rate
Fargo Bank
X
% X
Time
=
Interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c31f947-5848-48a2-943b-5d3c9bff6f43%2Fae690f8d-e37e-476d-92be-3d820f76773d%2F3bbtclt_processed.png&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 $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.
July 8
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.
?
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
_?___ Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense recorded in Year 2. (Do not round your intermediate calculations. Use 360 days a year.)
Year End Accrual Required For:
Interest to be recorded in Year 2
Principal X
Rate
Fargo Bank
X
% X
Time
=
Interest
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