Required information Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities: Year 1 Apri1 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the Apri1 20 account payable to Locust with a 90 -day, 98,$35,000 note payable along with paying $3,000 in cash. Joly 8 Borrowed $54,000 cash from NBR Dank by signing a 120-day, 108, $54,000 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 $30,000 cash from Fargo Bank by signing a 60-day, 78, $30,000 note payable. December 31 Recorded an adjusting ontry for acerued interest on the note to Fargo Bank. Year 2 - 2 - Paid the amount due on the note to Fargo Bank at the maturity date. Problem 9-1A (Algo) Part 1 Required: 1. Determine the maturity date for each of the three notes described. Required information Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 Apri1 20 Purchased $38,000 of merchandise on credit fron Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90 -day, 98, $35,000 note payable along with paying $3,000 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 108, $54,000 note payabie. - Paid the anount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. Novenber 28 Borroved $30,000 cash Erom Fargo Bank by signing a 60-day, 78,$30,000 note payable. December 31 recorded an adjusting entry for acerued interest on the note to Pargo Bank. Year 2 ? Paid the amount due on the note to Pargo Bank at the maturity date. Problem 9-1A (Algo) Part 2 2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.) Required information Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1 [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 $38,000 of merehandise on credit from Locust, termi n/30. May 19 Replaced the Apri1 20 account payable to Locust with a 90day,98,$35,000 note payable along with paying $3,000 in cash. Ju1y a Borrowed $54,000 cash from Nak Bank by aigning a 120-day, 102, $54,000 note payable. ? Paid the amount due on the note to tocubt at the maturity date. Paid the asount due on the note to PBR Bank at the maturity date. November 28 Borrowed $30,000 cash from Pargo Bank by signing a 60 -day, 71,$30,000 note payable. December 31 Recorded an adjusting entry for acerued interest on the note to rargo Bank. Year 2 - Paid the amount due on the note to Parqo Bank at the maturity date. Problem 9-1A (Algo) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.) Required information Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 Apri1 20 purchased $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the Apri1 20 account payable to Locust with a 90 -day, 92,$35,000 note payable alone with paying $3,000 in cash. July 8 Borrowed $54,000 cash from NBR Bank by aigning a 120-day, 108, $54,000 note payabie. ? Paid the amount due on the note to locust at the maturity date. -? Paid the amount due on the note to NBk Bank at the maturity date. November 28 Borrowed $30,000 cash from Fargo Bank by aigning a 60 -day, 78,$30,000 note payab1e. December 31 Recorded an adjusting entry for accrued interent on the note to Fargo Batik. Year 2 - - Paid the amount due on the note to Pargo Bank at the maturity date. Problem 9-1A (Algo) Part 4 4. Determine the interest expense recorded in Year 2. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.) 5. Prepare journal entries for all the preceding transactions and events. (Do not round your interme Purchased $38,000 of merchandise on credit from Locust, terms n/30. Replaced the April 20 account payable to Locust with a 90 -day, 9%,$35,000 note payable along with paying $3,000 in cash. Borrowed $54,000 cash from NBR Bank by signing a 120day, 10%,$54,000 note payable. 4 Paid the amount due on the note to Locust at the maturity date. 5 Paid the amount due on the note to NBR Bank at the maturity date. Note : = journal entry has been entered
