Question
GL0901 - Based on Problem 9-1A LO C2, P1 The January 1, 2016 trial balance for the Nguyen Company is found on the trial balance
GL0901 - Based on Problem 9-1A LO C2, P1 The January 1, 2016 trial balance for the Nguyen Company is found on the trial balance tab. The beginning balances are assumed. Hall Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year.) 2016 Apr. 20 Purchased $54,750 of merchandise on credit from Lee, terms are n/30. Hall uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Lee with a 90-day, $36,000 note bearing 10% annual interest along with paying $18,750 in cash. July 8 Borrowed $96,000 cash from CDR Bank by signing a 120-day, 6% interest-bearing note with a face value of $96,000. Aug. 17 Paid the amount due on the note to Lee at the maturity date. Nov. 5 Paid the amount due on the note to CDR Bank at the maturity date. Nov. 28 Borrowed $51,000 cash from Austin Bank by signing a 60-day, 12% interest-bearing note with a face value of $51,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. 2017 Jan. 27 Paid the amount due on the note to Austin Bank at the maturity date.
1
Apr. 20. Purchased $54,750 of merchandise on credit from Lee, terms n30. Hall uses the perpetual inventory system.
2
May 19. Replaced the April 20 account payable to Lee with a 90-day, $36,000 note bearing 10% annual interest along with paying $18,750 in cash.
3
Jul. 8. Borrowed $96,000 cash from CDR Bank by signing a 120-day, 6% interest-bearing note with a face value of $96,000.
4
Aug. 17. Paid the amount due on the note to Lee 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 $51,000 cash from Austin Bank by signing a 60-day, 8% interest-bearing note with a face value of $51,000.
7
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank.
Note : = journal entry has been entered
Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance.
UnadjustedAdjustedPost-closing
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Prepare the January 27, 2017 journal entry to record the payment of the Austin note at maturity. Nguyen Company does NOT prepare reversing entries.
UnadjustedAdjustedPost-closing
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Here are the balances in Accounts and Notes payable based on your journal entries:
UnadjustedAdjustedPost-closing
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