The January 1, 2016 trial balance for the Perry Company is found on the trial balance tab. The beginning balances are assumed. North Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year.) 2016 Apr. 20 Purchased $53,750 of merchandise on credit from Garcia, terms are n/30. North uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Garcia with a 90-day, $38,000 note bearing 10% annual interest along with paying $15,750 in cash. July 8 Borrowed $90,000 cash from AKR Bank by signing a 120-day, 9% interest-bearing note with a face value of $90,000. Aug. 17 Paid the amount due on the note to Garcia at the maturity date. Nov. 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 28 Borrowed $45,000 cash from Albany Bank by signing a 60-day, 8% interest-bearing note with a face value of $ 45,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. 2017 Jan. 27 Paid the amount due on the note to Albany Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest 2017 payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list View journal entry worksheet Date Debit Credit No 1 Apr 20 53,750 Account Title Accounts payable - Garcia Notes receivable - Other Cash 38,000 15,750 Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. North Co. Calculation of interest expense August 17 - Garcia note: Principal Interest rate Number of days' interest to be recorded in 2016 Total interest expense - 2016 GA 0 May 19 Replaced the April 20 account payable to Garcia with a 90-day, $38,000 note bearing 10% annual interest along with paying $15, 750 in cash. July 8 Borrowed $90,000 cash from AKR Bank by signing a 120-day, 9% interest-bearing note with a face value of $90,000. Aug. 17 Paid the amount due on the note to Garcia at the maturity date. Nov. 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 28 Borrowed $45,000 cash from Albany Bank by signing a 60-day, 8% interest-bearing note with a face value of $ 45,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. 2017 Jan. 27 Paid the amount due on the note to Albany Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest 2017 payment Prepare the January 27, 2017 journal entry to record the payment of the Albany note at maturity. Perry Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/2017