general journal - Aug.17, Nov.5, Dec.31

The January 1, Year 1 trial balance for the Mitchell Company is found on the trial balance tab. The beginning balances are assumed. Lewis Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 Apr. May July Aug. Nov. Nov. Dec. 20 Purchased $50, 250 of merchandise on credit from Brown, terms n/30. 19 Replaced the April 20 account payable to Brown with a 90-day, 10%, $39,000 note payable along with paying $11,250 in cash. 8 Borrowed $105,000 cash from AKR Bank by signing a 120-day, 6%, $105,000 note payable. 17 Paid the amount due on the note to Brown at the maturity date. 5 Paid the amount due on the note to AKR Bank at the maturity date. 28 Borrowed $63,000 cash from Rochester Bank by signing a 60-day, 12%, $63,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year Jan. 27 Paid the amount due on the note to Rochester Bank at the maturity date. Year 2 Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. Mitchell Company does NOT prepare reversing entries. Prev 1 of 1 Jul 08 105,000 Cash Notes payable - AKR Bank 105,000 Aug 17 Notes payable - Brown Interest expense Cash 39,000 613 Nov 05 Notes payable - AKR Bank Interest expense Cash III 105,000 240 OO OO OOO OOO Nov 28 3 3 Cash Notes payable - Rochester Interest expense Interest payable Lewis Co. Calculation of interest expense August 17 - Brown note: Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense - Year 1 Total interest expense - Year 1 & Schedule of Payables Ye: Prev 1 of 1 Jan. 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. Mi does NOT prepare reversing entries. Debit Credit Date 1/27/Year 2 Account title Notes payable - Rochester Interest payable Interest expense Cash