The January 1, 2016 trial balance for the North Company is found on the trial balance tab. The beginning balances are assumed King Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year) 2016 Apr. 20 Purchased $46,250 of merchandise on credit from Turner, terms are n/30. King uses the perpetual inventory system with paying $7,250 in cash. $117,000 May 19 Replaced the April 20 account payable to Turner with a 90-day, $39,000 note bearing 8% annual interest along July 8 Borrowed $117,000 cash from NMR Bank by signing a 120-day, 9% interest-bearing note with a face value of Aug. 17 Paid the amount due on the note to Turner at the maturity date Nov 5 Paid the amount due on the note to NMR Bank at the maturity date. Nov. 28 Borrowed $78,000 cash from Fargo Bank by signing a 60-day, 10% interest-bearing note with a face value of $78,000 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank 2017 Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date General Journal Schedule of Payables Calculation of 2017 payment General Requirement Trial Balance Ledger Interest No input required -a(34) Trial Balance January 01, 2017 Account Title Debit Credit 78,960 53,750 Cash Merchandise inventory Interest payable Notes payable - Fargo North, Capital Interest expense 468 78,000 59,000 4,758 137,468 $ Total 137,468 The January 1, 2016 trial balance for the North Company is found on the trial balance tab. The beginning balances are assumed King Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year) 2016 Apr. 20 Purchased $46,250 of merchandise on credit from Turner, terms are n/30. King uses the perpetual inventory system with paying $7,250 in cash. $117,000 May 19 Replaced the April 20 account payable to Turner with a 90-day, $39,000 note bearing 8% annual interest along July 8 Borrowed $117,000 cash from NMR Bank by signing a 120-day, 9% interest-bearing note with a face value of Aug. 17 Paid the amount due on the note to Turner at the maturity date Nov 5 Paid the amount due on the note to NMR Bank at the maturity date. Nov. 28 Borrowed $78,000 cash from Fargo Bank by signing a 60-day, 10% interest-bearing note with a face value of $78,000 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank 2017 Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date General Journal Schedule of Payables Calculation of 2017 payment General Requirement Trial Balance Ledger Interest No input required -a(34) Trial Balance January 01, 2017 Account Title Debit Credit 78,960 53,750 Cash Merchandise inventory Interest payable Notes payable - Fargo North, Capital Interest expense 468 78,000 59,000 4,758 137,468 $ Total 137,468
