Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

[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 $39,500

[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 $39,500 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 $4,500 in cash.
July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 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, 9%, $30,000 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.

1. Determine the maturity date for each of the three notes described.

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.)

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.)

image text in transcribedimage text in transcribedimage text in transcribed

Required information [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 $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 88, \$35,000 note payable along with paying $4,500 in cash. July 8 Borrowed $57,000 cash from NBR Bank by signing a 120 -day, 118, $57,000 note _? 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, 98, \$30,000 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. Required: 1. Determine the maturity date for each of the three notes described. Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. 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.) [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 $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 88, \$35,000 note payable along with paying $4,500 in cash. July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 118, $57,000 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, 98, \$30,000 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. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions