Required information [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $38,500 of merchandise on credit from Locust, terms 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $69,000. 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 $21,000 cash from Fargo Bank by signing a 60-day, 9% interest-bearing note with a face value of $21,000. Dec.31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 ? Paid the amount due on the note to Fargo Bank at the maturity date. equired: Determine the maturity date for each of the three notes described. Locust NBR Bank Fargo Bank laturity date Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $38,500 of merchandise on credit from Locust, terms 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 118 interest-bearing note with a face value of $69,000. 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 $21,000 cash from Fargo Bank by signing a 60-day, 98 interest-bearing note with a face value of $21,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 _?__ Paid the amount due on the note to Fargo Bank at the 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.) Principal X Rate x Time - interest Locust NBR Bank Fargo Bank Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $38,500 of merchandise on credit from Locust, terms 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 118 interest-bearing note with a face value of $69,000. 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 $21,000 cash from Fargo Bank by signing a 60-day, 98 interest-bearing note with a face value of $21,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 ? Paid the amount due on the note to Fargo Bank at the maturity date. 3. Determine the interest expense to be recorded in the adjusting entry at the end of 2016. (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 2016 Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $38,500 of merchandise on credit from Locust, terms 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 111 interest-bearing note with a face value of $69,000. 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 $21,000 cash from Fargo Bank by signing a 60-day, 9 interest-bearing note with a face value of $21,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense to be recorded in 2017. (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 Rate Fargo Bank x Time % * X * Interest - - Interest to be recorded in 2017 Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $38,500 of merchandise on credit from Locust, terms 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 116 interest-bearing note with a face value of $69,000. 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 $21,000 cash from Fargo Bank by signing a 60-day, 99 interest-bearing note with a face value of $21,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 ? Paid the amount due on the note to Fargo Bank at the maturity date. 5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet 2 3 4 5 6 7
