General Journal with ( Account Title ) Debit/Credit

1 - Apr. 20. Purchased $51,250 of merchandise on credit from Clark, terms n30. Wilson uses the perpetual inventory system.

2- May 19. Replaced the April 20 account payable to Clark with a 90-day, $37,000 note bearing 8% annual interest along with paying $14,250 in cash.

3 - Jul. 8. Borrowed $111,000 cash from CDR Bank by signing a 120-day, 10% interest-bearing note with a face value of $111,000.

4- Aug. 17. Paid the amount due on the note to Clark at the maturity date.

5- Nov. 5. Paid the amount due on the note to CDR Bank at the maturity date.

6 - Nov. 28. Borrowed $69,000 cash from Sacramento Bank by signing a 60-day, 8% interest-bearing note with a face value of $69,000

7 - Dec. 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank.

The January 1, Year 1 trial balance for the Turner Company is found on the trial balance tab. The beginning balances are assumed. Wilson 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 $51,250 of merchandise on credit from Clark, terms n/30. 19 Replaced the April 20 account payable to Clark with a 90-day, 89, $37,000 note payable along with paying $14,250 in cash. 8 Borrowed $111,000 cash from CDR Bank by signing a 120-day, 10%, $111,000 note payable. 17 Paid the amount due on the note to Clark at the maturity date. 5 Paid the amount due on the note to CDR Bank at the maturity date. 28 Borrowed $69,000 cash from Sacramento Bank by signing a 60-day, 88, $69,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 Jan. 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Jan. 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Veri expense agrees with your journal entries and the trial balance. Wilson Co. Calculation of interest expense August 17 - Clark note: Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense - Year 1 $ 0