HW:Ch 9

Question 7

Tyrell Company entered into the following transactions involving short-term liabilities. Yoar 1 Apri1 20 Purchaned $36,500 of merchandise on eredit froen Locuet, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 81, 535,000 note payable along with paying 51,500 in cash. July 8 Borroved $69,000 cash fron Nak Bank by signing a 120 -day, 108, $69,000 note payable. Paid the amount due on the pote to locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $24,000 eash from Fargo Bank by signing a 60-day, Bs, $24,000 note payable. Decenber 31 Recorded an adjusting entry for accrued interest on the note to rargo Bank. Year 2 2 Paid the amount due on the note to rargo Bank at the maturity date. 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year