1 1 Griffin Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) 15 points Year 1 Apr. May July Aug Nov. Nov. Dec. 20 Purchased $40,750 of merchandise on credit from Martin, terms n/30. 19 Replaced the April 20 account payable to Martin with a 90-day, 8%, $36,800 note payable along with paying $4,750 in cash. 8 Borrowed $84,888 cash from CDR Bank by signing a 120-day, 12%, $84,888 note payable. 17 Paid the amount due on the note to Martin at the maturity date. 5 Paid the amount due on the note to CDR Bank at the maturity date. 28 Borrowed $45,000 cash from Chicago Bank by signing a 60-day, 12%, $45,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank. eBook Year 2 Jan. 27 Paid the amount due on the note to Chicago Bank at the maturity date. Print Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment References Enter the principal amount, Interest rate, and number of days of Interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. Griffin Co. Calculation of interest expense August 17 - Martin note: Principal Interest rate Number of days' interest to be recorded in Year 1 Ch 09 GL P9-1a A Saved LAPCII uyi IT Jul JurnUI CICILJU I LITUI CUIUIL. 1 15 points Griffin Co. Calculation of interest expense August 17 - Martin note: Principal Interest rate Number of days' interest to be recorded in Year 1 eBook Print References Total interest expense - Year 1 $ 0 Ch 09 GL P9-10 A Saved Help Save & Ex Chec 1 GL901 - Based on Problem 9-1A LO C2, P1 15 points The January 1, Year 1 trial balance for the Brown Company is found on the trial balance tab. The beginning balances are assumed. Griffin Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) eBook Year 1 Apr. May July Aug. Nov. Nov. Dec. 29 Purchased $49,758 of merchandise on credit from Martin, terms n/30 19 Replaced the April 2e account payable to Martin with a 90-day, 8%, $36,689 note payable along with paying $4,750 in cash. 8 Borrowed $84,600 cash from CDR Bank by signing a 120-day, 12%, $84,888 note payable, 17 Paid the amount due on the note to Martin at the maturity date. 5 Paid the amount due on the note to CDR Bank at the maturity date. 28 Borrowed $45,000 cash from Chicago Bank by signing a 50-day, 12%, $45,008 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank. Prin: Year 2 Jan. References 27 Paid the amount due on the note to Chicago Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Chicago note at maturity. Brown Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2
