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Name: Date: Cells highlighted in green contain a drop-down list; select the appropriate account/response from the list. When the calculations for interest are correct, the
Name: Date: Cells highlighted in green contain a drop-down list; select the appropriate account/response from the list. When the calculations for interest are correct, the cells will change to yellow. Chapman Co. entered into the following transactions involving short-term liabilities in 2021 and 2022. 2021 Apr. May July 20 Purchased $40,250 of merchandise on credit from Jeremy Bros., terms n/30. Chapman uses the perpetual inventory system. 19 Replaced the April 20 account payable to Jeremy Bros. With a 90-day, $35,000 note bearing 10% annual interest along with paying $5,250 in cash. 8 Borrowed $80,000 cash from BTN Bank by signing a 120-day, 9% interest-bearing note with a face value of $80,000. Paid the amount due on the note to Jeremy Bros. at the maturity date. Paid the amount due on the note to BTN Bank at the maturity date. 28 Borrowed $42,000 cash from Juneau Bank by signing a 60-day, 8% interest-bearing note with a face value of $42,000. 31 Recorded an adjusting entry for accrued interest on the note to Juneau Bank. ? Nov. Dec. 2022 Paid the amount due on the note to Juneau Bank at the maturity date. Required: 1. Determine the maturity date for each of the three notes described. Jeremy Bros. BTN Bank Juneau Bank Maturity date 2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.) = = Jeremy Bros BTN Bank Juneau Bank Principal $35,000 $80,000 $42.000 X Rate 10% 9% 8% X Time 90/360 120/360 60/360 Interest $875 $2,400 $560 3. Determine the interest expense to be recorded in the adjusting entry at the end of 2021. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Principal Interest to be accrued in 2021 Rate Juneau Bank Time Interest = 4. Determine the interest expense to be recorded in 2022. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Principal Rate Juneau Bank X Time X x Interest Interest to be accrued in 2022 5.1 Prepare journal entries for all the preceding transactions and events for 2021. General Journal Debit Credit Date 20-Apr-21 19-May-21 8-Jul-21 17-Aug-21 5-Nov-21 28-Nov-21 31-Dec-21 5.2 Prepare journal entries for all the preceding transactions and events for 2022. General Journal Debit Credit Date 27-Jan-22
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