Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 9-1A Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Co. entered into the following

Problem 9-1A Short-term notes payable transactions and entries LO P1

[The following information applies to the questions displayed below.]

Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013.image text in transcribed
2012
Apr. 20

Purchased $35,000 of merchandise on credit from Locust, terms are 1/10, n/30. Tyrell uses the perpetual inventory system.

May 19

Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $0 in cash.

July 8

Borrowed $63,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $63,000.

__?__ Paid the amount due on the note to Locust at the maturity date.
__?__ Paid the amount due on the note to National Bank at the maturity date.
Nov. 28

Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $30,000.

Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

2013
__?__ Paid the amount due on the note to Fargo Bank at the maturity date.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions