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Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lee Company is found on the trial balance tab. The
Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lee Company is found on the trial balance tab. The beginning balances are assumed. Lee Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $45,250 of merchandise on credit from Mitchell, terms n/30. May 19 Replaced the April 20 account payable to Mitchell with a 90-day, 10%, $37,000 note payable along with paying $8,250 in cash. Borrowed $111,000 cash from NYR Bank by signing a 120-day, 10 %, $111,000 note payable. July 8 August 17 Paid the November 5 Paid the amount due on the note to Mitchell at the maturity date. amount due on the note to NYR Bank at the maturity date. November 28 Borrowed $72,000 cash from Sacramento Bank by signing a 60-day, 6%, $72,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal View transaction list No General Ledger Date Trial Balance Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. Schedule of Calculation of Payables Interest View journal entry worksheet Year 2 payment Account Title Debit Credit X
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