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Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1 Skip to question [The following information applies to the questions displayed below.] Tyrell Company
Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1
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[The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1
April 20 | Purchased $40,250 of merchandise on credit from Locust, terms n/30. |
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May 19 | Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. |
July 8 | Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. |
___?___ | Paid the amount due on the note to Locust at the maturity date. |
___?___ | Paid the amount due on the note to NBR Bank at the maturity date. |
November 28 | Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. |
December 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
Year 2
__?__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
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2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year
locust Principal x Rate x time = interest
nbr bank Principal x Rate x time = interest
fargo bank Principal x Rate x time = interest
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