al Ledger LE Saved Help Save & Exit Sub The January 1, Year 1 trial balance for the King Company is found on the trial balance tob. The beginning balances are assumed. Martin Co. entered into the following transactions involving short-term liabilitles. (Use 360 days a year) Year 1 Apr. May July Aug. Nov. Nov. Dec. 20 Purchased $53,250 of merchandise on credit from Wilson, terms n/30. 19 Replaced the April 20 account payable to Wilson with a 90-day, 69, $37,000 note payable along with paying $16,250 in cash. 8 Borrowed $87,000 cash from NMR Bank by signing a 120-day, 6, $87,000 note payable. 17 Paid the amount due on the note to Wilson at the maturity date. 5 Paid the amount due on the note to NMR Bank at the maturity date. 28 Borrowed $81,000 cash from Rochester Bank by signing a 60-day, 12%, $81,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 Jan. 27 Paid the amount due on the note to Rochester Bank at the maturity date. General General Schedule of Calculation of Year 2 Requirement Trial Balance Journal Ledger Payables Interest payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry worksheet 5 6 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank He Jan. 27 Paid the amount due on the note to Rochester Bank at the saturity date. General General Requirement Trial Balance Schedule of Calculation of Journal Year 2 Ledger Payables Interest Dayment 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. Martin Co. Calculation of interest expense August 17 - Wilson note: Principal Interest rate Number of days' interest to be recorded in Year 1 $ 0 Total interest expense - Year 1 Year 1 Apr. May July Aug. Nov. NOV. Dec. 20 Purchased 553, 250 of merchandise on credit from Wilson, teras 30. 19 Replaced the April 20 account payable to Wilson with a 90-day, 6, 537.000 note wabte along with paying $16.250 in cash. 8 Borrowed 587,000 cash from NMR Bank by signing a 120-day, 61, 587.600 note payable 17 Paid the amount due on the note to Wilson at the naturity date. 5 Paid the amount due on the note to NMR Bank at the saturity date. 28 Borrowed $81,000 cash from Rochester Bank by signing a 60-day, 125, 581,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 Jan. 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General General Trial Balance Schedule of Calculation of Journal Year 2 Ledger Payables Interest payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. King Company does NOT prepare reversing entries. Date Account title Debit Credit 1/27/Year 2
