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

Year 1
Apr.		20		Purchased $52,250 of merchandise on credit from Lewis, terms n/30.
May		19		Replaced the April 20 account payable to Lewis with a 90-day, 12%, $39,000 note payable along with paying $13,250 in cash.
July		8		Borrowed $117,000 cash from NYR Bank by signing a 120-day, 9%, $117,000 note payable.
Aug.		17		Paid the amount due on the note to Lewis at the maturity date.
Nov.		5		Paid the amount due on the note to NYR Bank at the maturity date.
Nov.		28		Borrowed $75,000 cash from Fargo Bank by signing a 60-day, 8%, $75,000 note payable.
Dec.		31		Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
Jan.		27		Paid the amount due on the note to Fargo 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.

No	Date	Account Title	Debit	Credit

General Ledger Account

No.	Date	Debit	Credit	Balance
	Jan 01			46,500

Cash

No.	Date	Debit	Credit	Balance
	Jan 01			6,500

Merchandise inventory

No.	Date	Debit	Credit	Balance
	Jan 01			53,000

Collins, Capital

Here are the balances in Accounts and Notes payable based on your journal entries:

UnadjustedAdjustedPost-closing

Parker Co.
Schedule of Accounts Payable
Total accounts payable	$0
Parker Co.
Schedule of Notes Payable
Total notes payable	$0

Parker Co.
Calculation of interest expense
August 17 - Lewis note:
Principal
Interest rate
Number of days' interest to be recorded in Year 1
	not attempted
	not attempted
	not attempted
	not attempted
Total interest expense - Year 1	$0
	not attempted
	not attempted
	not attempted

Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. Collins Company does NOT prepare reversing entries.

UnadjustedAdjustedPost-closing

Date	Account title	Debit	Credit
1/27/Year 2	Interest expenseselected answer correct	486selected answer incorrect	not attempted
	Interest payableselected answer correct	594selected answer incorrect	not attempted
	Accounts payable - Lewisselected answer incorrect	54,000selected answer incorrect	not attempted
	Cashselected answer correct	not attempted	55,080selected answer incorrect