The January 1, 2016 trial balance for the Walker Company is found on the trial balance tab. The beginning balances are assumed. Mitchell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year.) 2016 Apr. 20 Purchased $43,250 of merchandise on credit from Allen, terms are n/30. Mitchell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Allen with a 90-day, $37,000 note bearing 6% annual interest along with paying $6,250 in cash. July 8 Borrowed $99,000 cash from AKR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000. Aug. 17 Paid the amount due on the note to Allen at the maturity date. Nov. 5 Paid the amount due on the note to AKR Bank at the maturity date. Nov. 28 Borrowed $60,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $60,000. 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 -Calculation of Interest -2017 payment