GL901 (Algo) - Based on Problem 09-1A LO P1 The January 1, Year 1 tral balance for the North Company is found on the trial balance tab. The beginning balances are assumed. King Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased 546,250 of merchandise on credit from Turner, terns n/30. Hay 19 Replaced the April 20 account payable to Turner with a 90 day, ak, $39,000 note payable along with paying $7,25e in cash. July 8 Borrowed $117,000 cash from NPR Bank by signing a 120-day, 9%, $117,000 note payable. August 17 Paid the amount due on the note to Turner at the maturity date. November 5 Paid the amount due on the note to R Bank at the maturity date. November 28 Borrowed $78,000 cash from Fargo Bank by signing 60-day, 18%, $75,000 nate payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank Year 2 January 27 Paid the amount due on the note to Fargo 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. Verify that interest expense agrees with your journal entries and the trial balance. Minn Cinnan Ches January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment 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. King Company Calculation of interest oxpense August 17. Turner note: Principal Interest rate Number of days Interest to be recorded in Year 1 Impur Interest rate Number of days' interest to be recorded in Year 1 Total interest expense - Year 1 $ May 19 Replaced the April 20 account payable to Turner with a 90-day, 8%, $39,000 note payable along with paying 57,250 in cash. July 8 Borrowed $117.000 cash from NPR Bank by signing a 120-day, 9%, $117,000 note payable. August 17 Paid the amount due on the note to Turner at the maturity date. November 5 Paid the amount due on the note to R Bank at the maturity date. November 28 Borrowed $78,000 cash from Fargo Bank by signing a 60-day, 10%, $78,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. North Company does NOT prepare reversing entries. Account title Date 1/27/Year 2 Debit Credit
