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The January 1 , Year 1 trial balance for the Allen Company is found on the trial balance tab. The beginning balances are assumed. Allen

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The January 1 , Year 1 trial balance for the Allen Company is found on the trial balance tab. The beginning balances are assumed. Allen Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $48,250 of merchandise on credit from King, terms n/30. May 19 Replaced the April 20 account payable to King with a 90-day, 88, $39,000 note payable along with paying $9,250 in cash. July 8 Borrowed $93,000 cash from MTR Bank by signing a 120-day, 10%,$93,000 note payable. August 17 Paid the amount due on the note to King at the maturity date. November 5 Paid the amount due on the note to MTR Bank at the maturity date. November 28 Borrowed $51,900 cash from Sacramento Bank by signing a 60-day, 84,$51,006 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure th accuracy of your entries. 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. Prepare the January 27 , Year 2 journal entry to record the payment of the Sacramento note at maturity. Allen Company does NOT prepare reversing entries

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