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I need help ASAP with computing the General Journals for each transaction on year 1, also calculations of interest expense, and the January 27, Year
I need help ASAP with computing the General Journals for each transaction on year 1, also calculations of interest expense, and the January 27, Year 2 journal entry.
The January 1, Year 1 trial balance for the Lee Company is found on the trial balance tab. The beginning balances are assumed. Collins 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 $45,250 of merchandise on credit from Mitchell, terms n/30. 19 Replaced the April 20 account payable to Mitchell with a 90-day, 10%, $37,000 note payable along with paying $8,250 in cash. 8 Borrowed $111,000 cash from NYR Bank by signing a 120-day, 10%, $111,000 note payable. 17 Paid the amount due on the note to Mitchell at the maturity date. Paid the amount due on the note to NYR Bank at the maturity date. 28 Borrowed $72,000 cash from Sacramento Bank by signing a 60-day, 6%, $72,000 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. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Collins Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Year 2 payment tab - Prepare the January 27, Year 2 entry to record the repayment of the note at maturity. Requirement General Journal Collins Co. Calculation of interest expense August 17 - Mitchell note: Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense - Year 1 0 Prepare the January 27, Year 2 journal entry to record the payment of the Sacramento note at maturity. Lee Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2Step by Step Solution
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