Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $36,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $1,000 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 11%, $66,000 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. Nov. 28 Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 8%, $27,000 note payable. Dec. 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. Required: 1. Determine the maturity date for each of the three notes described. Locust NBR Bank Fargo Bank Maturity date 2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.) Time Interest Principal X Rate x Locust NBR Bank Fargo Bank % X 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Fargo Bank Time Principal X Rate Interest Interest to be accrued in Year 1 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.) Year end accrual required for: Principal X Rate Fargo Bank Time % Interest Interest to be recorded in Year 2 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Purchased $36,000 of merchandise on credit from Locust, terms n/30. Note: Enter debits before credits. General Journal Debit Credit Date Apr 20 Record entry Clear entry View general journal Journal entry worksheet Borrowed $66,000 cash from NBR Bank by signing a 120-day, 11%, $66,000 note payable. Note: Enter debits before credits. General Journal Debit Credit Date Jul 08 Record entry Clear entry View general journal Journal entry worksheet Paid the amount due on the note to Locust at the maturity date. Note: Enter debits before credits. General Journal Debit Credit Date Aug 17 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 3 5 6 7 8 > Paid the amount due on the note to NBR Bank at the maturity date. Note: Enter debits before credits. General Journal Debit Credit Date Nov 05 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 > Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 8%, $27,000 note payable. Note: Enter debits before credits. Date General Journal Debit Credit Nov 28 Record entry Clear entry View general journal Journal entry worksheet Paid the amount due on the note to Fargo Bank at the maturity date. Note: Enter debits before credits. General Journal Debit Credit Date Jan 27 Record entry Clear entry View general journal
