Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ca Vista C GL0901-Based on Problem 9-1A LO C2, P1 The January 1,2016 trial balance for the Perry Company is found on the trial balance

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ca Vista C GL0901-Based on Problem 9-1A LO C2, P1 The January 1,2016 trial balance for the Perry Company is found on the trial balance tab. The beginning balances are assumed North Co. entered into the following transactions involving short-term liabilities in 2016 and 2 2016 Apr. 20 Purchased $53,750 of merchandise on credit from Garcia, terns are a/30. North uses the pe 017. (Use 360 days a year) rpetual inventory May 19 Replaced the Apri1 20 account payable to Gareia vith a so-day, $38,000 note bearing 10 with paying $15,750 in cash y sigainga 120-day, 9 interest-bearing note with a face value of $90,000. July 8 Borroved $90,000 cash from AKR Bank b Aug. 17 Paid the anount due on the note to Garela at the naturity Nov. 5 Paid the anount due on the note to AKR Bank at the naturity d Nov. 28 Borroved 45,000 cash from Albany Bank by signing a so-day, 8t interest-bearing note vith a face value of $45,000 Dec. 31 Recorded an ad justing entry tor acerued interest on the note to Albany Bank. 2017 3an. 27 Paid the amount due on the note to Albany Bank at the naturity date Print GeneralG of Calculation of 2017 payment General Trial Balance Payables Ledger Truai Baiance Schedule of Calculation st General Journal tab - Prepare the 2016 journal entries related to the notes and accounts payable of North Co. Calculation of interest tab- Use the interest formula (P xR x T) to verify the amount of interest recorded in Verify that total interest expense agrees with the trial balance. 2017 payment tab- Prepare the January 27, 2017 entry to record the repayment of the note at maturity. Ch 09 GL Exercise May 19 Replaced the April 20 account payable to Gareis vith a 90-day, $38,000 note bearing 1o annual interest along with paying $15,750 in eash July 8 Aug. 17 Paid the amount due on the note to Gareia at the maturity date Nov. 5 Paid the anount due on the note to AKR Bank at the maturity date. $90,000 cash from AKR Bank by signing a 120-day, 9% i Nov. 28 Borroved $45,000 cash from Albany Bank by signing a 60-day, 8t intereat-bearing note with a face value of 15 $45,000 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. 2017 General Schedule of Calculation of 201 Ledger Trial Balance Interest Date Jan 01 No. No. Debit Jan 01 43,500 No. Jan 01 51,500 May 9 Replaced the April 20 account payable to Garcia with a 90-day, $38,000 note bearing 10t annual interest along with paying $15,750 in cash. July 8 Borroved $90,000 cash from AKR Bank by signing a 120-day, 9a interest-bearing note with a face value of $90,000. Aug. 17 Paid the amount due on the note to Gareia at the saturity date. Nov. 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 28 Borrowed $45,000 cash from Albany Bank by signinga 60-day, 8t interest-bearing note with a face value of 15 $45,000 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. 2017 Jan. 27 Paid the amount due on the note to Albany Bank at the maturity date. Ledger Tral Balance Schedule of Calculation of Payables Interest 2017 Trial Balance January 01, 2017 Debit 43 References 51,500 $90,000 cash from AKR Bank by signing a 120-day, 98 interest-bearing note with a face Aug. 17 Paid the amount due on the note to Garcia at the maturity date. Nov 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 28 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. 2017 $45,000 cash from Albany Bank by signing a 60-day, 88 interest-bearing note with a fac $45,000. Skipped Jan. 27 Paid the amount due on the note to Albany Bank at the maturity date GeneralTrial BalancePayables fCalculation of 2017 payment Journal eBook Here are the balances in Accounts and Notes payable based on your journal entries: North Co. Schedule of Accounts Payable North Co. of Total notes payable 2017 Jan. 27 Paid the amount due on the note to Albany Bank at the naturity date. agrees with your journal entries and the trial balance Co. Calculation of i in 2016 May 19 Replaced the April 20 account payable to Garcia with a 90-day, $38,000 note bearing 10% annual inte July 8 Borrowed $90,000 caah from AKR Bank by signing a 120-day, 9% interest-bearing note with a face valu with paying $15,750 in cash. Aug. 17 Paid the amount due on the note to Garcia at the maturity date. Nov. 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 2S Borrowed $45,000 cash from Albany Dec. 31 Recorded an adjusting entry for accrued interest 2017 Bank by signing a 60-day, 8% interest-bearing note with a face va $45,000 on the note to Albany Bank. Jan. 27 Paid the amount due on the note to Albany Bank at the maturity date. General Journal General Trial Balance Payables Ledger Schedule of Calculation of Requirement Interest2017 Prepare the January 27, 2017 journal entry to record the payment of the Albany note at maturity. Perry Company does Debit Print Account title 1/27/2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles And Practice

Authors: Kumar And Sharma

3rd Edition

8120350987, 9788120350984

More Books

Students also viewed these Accounting questions

Question

What kind of restaurant location can exist without parking?

Answered: 1 week ago

Question

=+ (a) Show that C is uncountable but trifling.

Answered: 1 week ago

Question

Discuss the goals of financial management.

Answered: 1 week ago