The January 1, Year 1 trial balance for the Clark Company is found on the trial balance tab. The beginning balances are assumed. Sanchez Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $41,750 of merchandise on credit from Taylor, terms n/30. May 19 Replaced the April 20 account payable to Taylor with a 90-day, 108, 538,600 note payable along with paying 34ly g porrowed $90,000. August 17 Paid the $90,000 cash from NYR Bank by signing a 120-day, 98,$90,000 note payable. November 5 Paid the amount due on the note to Taylor at the maturity date. November 5 Paid the amount due on the note to NrR Bank at the maturity date. November 28 Borrowed $51,000 cash from Albany Bank by signing a 60-day, 84, $51,600 note payable. Decenber 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. Year 2 January 27 Paid the amount due on the note to Albany Bank at the maturity date. General Journal tab - Journalize the transactions related to the notes and accounts payable of Sanchez Co. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detall of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Calculation of interest tab - Use the interest formula (PRT) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Year 2 oavment tab - Predare the Januarv 27 . Year 2 entrv to record the reoavment of the note at maturitv. \begin{tabular}{|c|c|} \hline \multicolumn{1}{|c|}{ Calculation of interest expense } \\ \hline August 17 - Taylor note: \\ \hline Principal & \\ \hline Interest rate & \\ \hline Number of days' interest to be recorded in Year 1 & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} Prepare the January 27 , Year 2 journal entry to record the payment of the Albany note at maturity. Clark Company does NOT prepare reversing entries
