GL901 - Based on Problem 9-1A LO C2, P1 The January 1 Year 1 trial balance for the Parker Company is found on the trial balance tab The beginning balances are assumed Garcia Co entered into the following transactions involving short-term Habilities (Use 360 days a year) Year 1 Apr , May July Aug Nov. Nov. Dec. 20 Purchased $51,750 of merchandise on credit from Contalez, terms w/s. 19 Replaced the April 20 account payable to contate with a 90-day, 10, 338,000 note payable along with paying $13,750 in cash. # Borrowed 5114,000 cash fron MTH Bank by signing a 120-day, 6%, $154,000 note payable 17 Paid the amount due on the note to dontalez at the maturity date 5 Paid the mount due on the note to HTR Bank at the maturity date. 28 Borrowed $72,000 cash from Austin Bank by signing a 60-day, 12, $72,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank Year 2 Jan. 27 Pald the amount due on the note to Austin Bank at the maturity date. General General Year 2 Schedule of Calculation of Trial Balance Requirement Journal Ledger Payables Interest payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest' tab to ensure the accuracy of your entries View transaction ist View transaction list Journal entry worksheet Aug. 17. Paid the amount due on the note to Gonzalez at the maturity date. Note: Enter debits before credits. Date Account Title Credit Debit 38,000 Aug 17 Notes payable - Gonzalez interest expense Cash Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 3 5 6 7 > Dec. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Note: Enter debits before credits. Debit Credit Date Dec 31 Account Title Interest expense Interest payable Record entry Clear entry View general journal Requirement General Journal General Ledger Trial balance Schedule of calculation of Payables Interest Year payment Enter the principal amount interest rate, and number of days of interest to be recorded for each note. Vority that interest expense agrees with your journal entries and the trial balance Garcia Calculation of interest August 17 Gonzalez note: Principal Interest rate Number of days interest to be recorded in Year 1 Total interest expense Year 1 5 The January 1 Year 1 trial balance for the Parker Company is found on the trial balance tab. The beginning balances are assumed. Garcia Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 Apr May July Aug Nov. 20 Purchased $51.750 of merchandise on credit from Gonzales, terns / 19 Replaced the April 20 account payable to Gonzaler with = 90-day, 18, 38,000 note payable along with paying $13,750 In Borrowed 5114,000 cash from RTR Bank by signing a 128-day, 6, 5114,000 note payable. 17 Paid the amount due on the note to Gontalet at the maturity date. 5 Pald the amount due on the note to MTR Bank at the maturity date. 28 Borrowed 72.000 cash from Austin Bank by signing a 60-day, 123, 372,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Nov Dec. Year 2 Jan. 27 Pald the amount due on the note to Austin Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Parker Company does NOT prepare reversing entries. Account the Debi Credit Date 1/27/Year 2 Calculation of Interest Ye
