BUS4060 u09a1 Template

Problem 9-1B

		Fox-Pro			Spring Bank		City Bank
1.	Maturity dates
	Date of the note	May 23			July 15		Dec. 6
	Term of the note (in days)	60			120		45
	Maturity date
2.	Interest due at maturity
	Principal of the note	$4,600			$12,000		$8,000
	Annual interest rate	15%			10%		9%
	Fraction of year
	Interest expense
3.	Accrued interest on City Bank note at the end of 2016
	Total interest for note
	Fraction of term in 2016
	Accrued interest expense

4. Interest in 2017

	Total interest for note
	Fraction of term in 2017
	Interest expense in 2017

Problem 9-1B (Concluded)

5.

Date	Account Titles	Debit	Credit

The last question I posted was wrong and didn't have the question posted, but here is the real question for 9-1B. First part is the question and the second is the template we need to fill out. Thank you for the help

PROBLEM SET B Problem 9-1B Short-term notes payable transactions and entries P1 Warner Co. entered into the following transactions involving short-term liabilities. Year 1 Year 1 Apr. 22 Purchased $5,000 of merchandise on credit from Fox-Pro, terms n /30. May 23 Replaced the April 22 account payable to Fox-Pro with a 60 -day, 15\%, \$4,600 note payable along with paying $400 in cash. July 15 Borrowed $12,000 cash from Spring Bank by signing a 120-day, 10\%, $12,000 note payable. Paid the amount due on the note to Fox-Pro at maturity. Paid the amount due on the note to Spring Bank at maturity. Dec. 6 Borrowed $8,000 cash from City Bank by signing a 45 -day, 9%,$8,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to City Bank. Year 2 Paid the amount due on the note to City Bank at maturity. 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) Fox-Pro, $115 (3) $50 (4) $40 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. 4. Determine the interest expense recorded in Year 2. 5. Prepare journal entries for all the preceding transactions and events. PROBLEM SET B Problem 9-1B Short-term notes payable transactions and entries P1 Warner Co. entered into the following transactions involving short-term liabilities. Year 1 Year 1 Apr. 22 Purchased $5,000 of merchandise on credit from Fox-Pro, terms n /30. May 23 Replaced the April 22 account payable to Fox-Pro with a 60 -day, 15\%, \$4,600 note payable along with paying $400 in cash. July 15 Borrowed $12,000 cash from Spring Bank by signing a 120-day, 10\%, $12,000 note payable. Paid the amount due on the note to Fox-Pro at maturity. Paid the amount due on the note to Spring Bank at maturity. Dec. 6 Borrowed $8,000 cash from City Bank by signing a 45 -day, 9%,$8,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to City Bank. Year 2 Paid the amount due on the note to City Bank at maturity. 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) Fox-Pro, $115 (3) $50 (4) $40 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. 4. Determine the interest expense recorded in Year 2. 5. Prepare journal entries for all the preceding transactions and events