Nov. 6 chap. 9

Problem 1 - Short-term notes payable transactions and entries - The following transactions were incurred during 2021 and 2022 for the SmithDale Company. 2021 41 Purchased $45,000 of merchandise on credit from RedTimes, terms n/30. 5/ Replaced the April 20 account payable to RedTimes with a 90-day, 8\%, $35,000 note payable along with 19 paying $10,000 in cash. 71 8 Borrowed $60,000 cash from Chase Bank by signing a 120-day, 12%,$60,000 note payable. _? Paid the amount due on the note to RedTimes at the maturity date. (You need to calculate this date). ? - Paid the amount due on the note to Chase Bank at the maturity date. (You need to calculate this date). 11 Borrowed $40,000 cash from Freedom Bank by signing a 60 -day, 8%,$40,000 note payable. 12 Recorded an adjusting entry for accrued interest on the note to Freedom Bank. 13 2025 ? Paid the amount due on the note to Freedom Bank at the maturity date. (You need to calculate this date). Required: 1. Determine the maturity date for each of the three notes described. 2. Determine the interest due at maturity for each of the three notes. (Use 360 days a year.) 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Use 360 days a year.) 4. Determine the interest expense recorded in Year 2. (Use 360 days a year.) 5. Prepare journal entries for all the preceding transactions and events