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Problem 11-1A Short-term notes payable transactions and entries P1 Tyrell Co. entered into the following transactions invohing short-term liabilities. Year J Apr, 20 Purchased $40,250 of merchandise on cued it 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 J20-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. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, S42,000 note payable, Dec. 31 Recorded an
Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. Required
1. Determine the maturity' date for each of the three notes described.
2. Determine the interest due at maturity for each of the three notes. Assume a 360-day year. Check (2; Locust. $875
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
[3} £303
4. Determine the interest expense recorded in Year 2.
[4} £252
5. Prepare
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Chapter 11 Solutions
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Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning