Required information

Skip to question

$[$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 $$39,000$ of merchandise on credit from Locust, terms n$/30.$

May $19$ Replaced the April $20$ account payable to Locust with a $90-$day, $7\%,$ $$35,000$ note payable along with paying $$4,000$ in cash.

July $8$ Borrowed $$60,000$ cash from NBR Bank by signing a $120-$day, $10\%,$ $$60,000$ note payable.

$\_\_?$question mark$\_\_$ Paid the amount due on the note to Locust at the maturity date.

$\_\_?$question mark$\_\_$ Paid the amount due on the note to NBR Bank at the maturity date.

November $28$ Borrowed $$33,000$ cash from Fargo Bank by signing a $60-$day, $8\%,$ $$33,000$ note payable.

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

Year $2$

$\_\_?$question mark$\_\_$ Paid the amount due on the note to Fargo Bank at the maturity date.

$3.$ Determine the interest expense recorded in the adjusting entry at the end of Year $1.$

Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use $360$ days a year.