The January 1, Year 1 trial balance for the Carter Company is found on the trial balance tab The beginning balances are assumed Gonzalez Co entered into the following transactions involving short term liabilities (Use 360 days a year ) Year 1 Apr 20 Purchased $49,750 of merchandise on credit from Nguyen, terms n 30 May 19 Replaced the April 20 account payable to Nguyen with a 90 day, 8 , $38,000 note payable along with paying $11,750 in cash July 8 Borrowed $102,000 cash from NMR Bank by signing a 120 day, 10 , $102,000 note payable Aug 17 Paid the amount due on the note to Nguyen at the maturity date Nov 5 Paid the amount due on the note to NMR Bank at the maturity date Nov 28 Borrowed $60,000 cash from Chicago Bank by signing a 60 day, 6 , $60,000 note payable Dec 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank Year 2 Jan 27 Paid the amount due on the note to Chicago Bank at the maturity date Prepare the journal entries related to notes and accounts payable Hint Use the Calculation of Interest tab to ensure the accuracy of your entries 2) May 19 Replaced the April 20 account payable to Nguyen with a 90 day, $38,000 note bearing 8 annual interest along with paying $11,750 in cash 3)Jul 8 Borrowed $102,000 cash from NMR Bank by signing a 120 day, 10 interest bearing note with a face value of $102,000 4) Aug 17 Paid the amount due on the note to Nguyen at the maturity date 5) Nov 5 Paid the amount due on the note to NMR Bank at the maturity date 6) Nov 28 Borrowed $60,000 cash from Chicago Bank by signing a 60 day, 6 interest bearing note with a face value of $60,000 7) Dec 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank Options for Account Tile 000 No journal entry required 101 Cash 103 Account receivable Other 104 Accounts receivable Chicago 105 Accounts receivable Nguyen 106 Accounts receivable NMR Bank 109 Allowance for doubtful accounts 110 Notes receivable Other 111 Notes receivable Chicago 112 Notes receivable Nguyen 113 Notes receivable NMR Bank 118 Interest receivable 120 Merchandise inventory 201 Accounts payable Other 202 Accounts payable Chicago 203 Accounts payable Nguyen 204 Accounts payable NMR Bank 206 Interest payable 209 Salaries payable 220 Notes payable Other 221 Notes payable Chicago 222 Notes payable Nguyen 223 Notes payable NMR Bank 226 Unearned fees 301 Carter, Capital 302 Carter, Withdrawals 403 Sales 404 Sales returns and allowances 405 Sales discounts 406 Interest revenue 600 Cost of goods sold 602 Purchases 603 Purchases returns and allowances 604 Purchases discounts 640 Rent expense 652 Freight in 655 Bad debts expense 660 Delivery expense 665 Interest expense 700 Income summary Another part of this table Options for the Account tile 000 No journal entry required 101 Cash 103 Account receivable Other 104 Accounts receivable Chicago 105 Accounts receivable Nguyen 106 Accounts receivable NMR Bank 109 Allowance for doubtful accounts 110 Notes receivable Other 111 Notes receivable Chicago 112 Notes receivable Nguyen 113 Notes receivable NMR Bank 118 Interest receivable 120 Merchandise inventory 201 Accounts payable Other 202 Accounts payable Chicago 203 Accounts payable Nguyen 204 Accounts payable NMR Bank 206 Interest payable 209 Salaries payable 220 Notes payable Other 221 Notes payable Chicago 222 Notes payable Nguyen 223 Notes payable NMR Bank 226 Unearned fees 301 Carter, Capital 302 Carter, Withdrawals 403 Sales 404 Sales returns and allowances 405 Sales discounts 406 Interest revenue 600 Cost of goods sold 602 Purchases 603 Purchases returns and allowances 604 Purchases discounts 640 Rent expense 652 Freight in 655 Bad debts expense 660 Delivery expense 665 Interest expense 700 Income summary General Schedule of Calculation of Year 2 General Trial Balance Requirement Ledger Payables Journal Interest payment General Journal tab Prepare the Year 1 journal entries related to the notes and accounts payable of Gonzalez Co Calculation of interest tab Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries Verify that total interest expense agrees with the trial balance Year 2 payment tab Prepare the January 27, Year 2 entry to record the repayment of the note at maturity Journal entry worksheet 4 Apr 20 Purchased $49,750 of merchandise on credit from Nguyen, terms n 30 Gonzalez uses the perpetual inventory system Note Enter debits before credits Date Account Title Debit Credit Apr 20 General General Schedule of Calculation of Year 2 Trial Balance Requirement Payables Journal Ledger payment Interest General Ledger Account Merchandise inventory Cash Credit No Date Debit Credit Balance No Date Debit Balance Jan 01 7,500 Jan 01 48,000 Carter, Capital Balance No Date Debit Credit 55,500 Jan 01 General General Schedule of Calculation of Year 2 Trial Balance Requirement Journal Payables Ledger Interest payment No input required Year 2018 represents Year 1 from the problem statement Carter Company Trial Balance December 31, 2018 Account Title Debit Credit 48,000 Cash Merchandise inventory 7,500 55,500 Carter, Capital 55,500 $ 55,500 Total 2$ Year 2 payment Schedule of General General Calculation of Trial Balance Requirement Ledger Payables Journal Interest Here are the balances in Accounts and Notes payable based on your journal entries Gonzalez Co Schedule of Accounts Payable $ Total accounts payable Gonzalez Co Schedule of Notes Payable ETotal notes payable Calculation of Schedule of General General Year 2 Trial Balance Requirement Journal Ledger Payables Interest payment 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 Gonzalez Co Calculation of interest expense August 17 Nguyen note Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense Year 1 Schedule of Calculation of General Journal General Year 2 Requirement Trial Balance Ledger Payables Interest payment Prepare the January 27, Year 2 journal entry to record the payment of the Chicago note at maturity Carter Company does NOT prepare reversing entries Date Account title Debit Credit 1 27 Year 2

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

The January 1, Year 1 trial balance for the Carter Company is found on the trial balance tab. The beginning balances are assumed. Gonzalez Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.)

Year 1
Apr.	20	Purchased $49,750 of merchandise on credit from Nguyen, terms n/30.
May	19	Replaced the April 20 account payable to Nguyen with a 90-day, 8%, $38,000 note payable along with paying $11,750 in cash.
July	8	Borrowed $102,000 cash from NMR Bank by signing a 120-day, 10%, $102,000 note payable.
Aug.	17	Paid the amount due on the note to Nguyen at the maturity date.
Nov.	5	Paid the amount due on the note to NMR Bank at the maturity date.
Nov.	28	Borrowed $60,000 cash from Chicago Bank by signing a 60-day, 6%, $60,000 note payable.
Dec.	31	Recorded an adjusting entry for accrued interest on the note to Chicago Bank.

Year 2
Jan.	27	Paid the amount due on the note to Chicago Bank at the maturity date.

image text in transcribed Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries.

image text in transcribed 2) May 19. Replaced the April 20 account payable to Nguyen with a 90-day, $38,000 note bearing 8% annual interest along with paying $11,750 in cash.

3)Jul. 8. Borrowed $102,000 cash from NMR Bank by signing a 120-day, 10% interest-bearing note with a face value of $102,000.

4) Aug. 17. Paid the amount due on the note to Nguyen at the maturity date.

5) Nov. 5. Paid the amount due on the note to NMR Bank at the maturity date.

6) Nov. 28. Borrowed $60,000 cash from Chicago Bank by signing a 60-day, 6% interest-bearing note with a face value of $60,000.

7) Dec. 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank.

Options for Account Tile

000: No journal entry required
101: Cash
103: Account receivable - Other
104: Accounts receivable - Chicago
105: Accounts receivable - Nguyen
106: Accounts receivable - NMR Bank
109: Allowance for doubtful accounts
110: Notes receivable - Other
111: Notes receivable - Chicago
112: Notes receivable - Nguyen
113: Notes receivable - NMR Bank
118: Interest receivable
120: Merchandise inventory
201: Accounts payable - Other
202: Accounts payable - Chicago
203: Accounts payable - Nguyen
204: Accounts payable - NMR Bank
206: Interest payable
209: Salaries payable
220: Notes payable - Other
221: Notes payable - Chicago
222: Notes payable - Nguyen
223: Notes payable - NMR Bank
226: Unearned fees
301: Carter, Capital
302: Carter, Withdrawals
403: Sales
404: Sales returns and allowances
405: Sales discounts
406: Interest revenue
600: Cost of goods sold
602: Purchases
603: Purchases returns and allowances
604: Purchases discounts
640: Rent expense
652: Freight-in
655: Bad debts expense
660: Delivery expense
665: Interest expense
700: Income summary

image text in transcribed

Another part of this table

Options for the Account tile

000: No journal entry required
101: Cash
103: Account receivable - Other
104: Accounts receivable - Chicago
105: Accounts receivable - Nguyen
106: Accounts receivable - NMR Bank
109: Allowance for doubtful accounts
110: Notes receivable - Other
111: Notes receivable - Chicago
112: Notes receivable - Nguyen
113: Notes receivable - NMR Bank
118: Interest receivable
120: Merchandise inventory
201: Accounts payable - Other
202: Accounts payable - Chicago
203: Accounts payable - Nguyen
204: Accounts payable - NMR Bank
206: Interest payable
209: Salaries payable
220: Notes payable - Other
221: Notes payable - Chicago
222: Notes payable - Nguyen
223: Notes payable - NMR Bank
226: Unearned fees
301: Carter, Capital
302: Carter, Withdrawals
403: Sales
404: Sales returns and allowances
405: Sales discounts
406: Interest revenue
600: Cost of goods sold
602: Purchases
603: Purchases returns and allowances
604: Purchases discounts
640: Rent expense
652: Freight-in
655: Bad debts expense
660: Delivery expense
665: Interest expense
700: Income summary

General Schedule of Calculation of Year 2 General Trial Balance Requirement Ledger Payables Journal Interest payment General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Gonzalez Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Year 2 payment tab - Prepare the January 27, Year 2 entry to record the repayment of the note at maturity. Journal entry worksheet 4 Apr. 20. Purchased $49,750 of merchandise on credit from Nguyen, terms n/30. Gonzalez uses the perpetual inventory system. Note: Enter debits before credits. Date Account Title Debit Credit Apr 20 General General Schedule of Calculation of Year 2 Trial Balance Requirement Payables Journal Ledger payment Interest General Ledger Account Merchandise inventory Cash Credit No. Date Debit Credit Balance No. Date Debit Balance Jan 01 7,500 Jan 01 48,000 Carter, Capital Balance No. Date Debit Credit 55,500 Jan 01 General General Schedule of Calculation of Year 2 Trial Balance Requirement Journal Payables Ledger Interest payment No input required. Year 2018 represents Year 1 from the problem statement. Carter Company Trial Balance December 31, 2018 Account Title Debit Credit 48,000 Cash Merchandise inventory 7,500 55,500 Carter, Capital 55,500 $ 55,500 Total 2$ Year 2 payment Schedule of General General Calculation of Trial Balance Requirement Ledger Payables Journal Interest Here are the balances in Accounts and Notes payable based on your journal entries: Gonzalez Co. Schedule of Accounts Payable $ Total accounts payable Gonzalez Co. Schedule of Notes Payable ETotal notes payable Calculation of Schedule of General General Year 2 Trial Balance Requirement Journal Ledger Payables Interest payment 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. Gonzalez Co. Calculation of interest expense August 17 - Nguyen note: Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense - Year 1 Schedule of Calculation of General Journal General Year 2 Requirement Trial Balance Ledger Payables Interest payment Prepare the January 27, Year 2 journal entry to record the payment of the Chicago note at maturity. Carter Company does NOT prepare reversing entries. Date Account title Debit Credit 1/27/Year 2