Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018. 2017 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual. inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $69,000. 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 $30,000 cash from Fargo Bank by signing a 60-day, 9% interest-bearing note with a face value of $30,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.. 2018 _____ Paid the amount due on the note to Fargo Bank at the maturity date. 22. 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 x Rate % x % % X Time Interest
Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018. 2017 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual. inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $69,000. 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 $30,000 cash from Fargo Bank by signing a 60-day, 9% interest-bearing note with a face value of $30,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.. 2018 _____ Paid the amount due on the note to Fargo Bank at the maturity date. 22. 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 x Rate % 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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Transcribed Image Text:Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018.
2017
Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual
inventory system.
May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual
interest along with paying $500 in cash.
July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value
of $69,000.
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 $30,000 cash from Fargo Bank by signing a 60-day, 9% interest-bearing note with a face value
of $30,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
2018
-1
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 x Rate
X
x
x
% x
% X
% X
Time M Interest
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