The January 1, Year 1 trial balance for the Mitchell Company is found on the trial balance tab. The beginning balances are assumed. Lewis Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 Apr. May July Aug. Nov. Nov. Dec. 20 Purchased $50, 250 of merchandise on credit from Brown, terms n/30. 19 Replaced the April 20 account payable to Brown with a 90-day, 10%, $39,000 note payable along with paying $11,250 in cash. 8 Borrowed $105,000 cash from AKR Bank by signing a 120-day, 6%, $105,000 note payable. 17 Paid the amount due on the note to Brown at the maturity date. 5 Paid the amount due on the note to AKR Bank at the maturity date. 28 Borrowed $63,000 cash from Rochester Bank by signing a 60-day, 12%, $63,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year Jan. 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. Mitchell Company does NOT prepare reversing entries. Prev 1 of 1 HURTIGUI UASHLOOL LUULULUGLIO 2.100 Interest - Principal x rate x days/360 November 28 - Accrued interest - Rochester note: Principal Interest rate Number of days' interest to be recorded in Year 1 Interest - Principal x rate x days/360 = 63,000 12.0% 33 693 Total interest expense - Year 1 3.768 January 27, Year 2 - Interest expense - Rochester note: Principal Interest rate Number of days' interest to be recorded in Year 2 Interest = Principal x rate x days/360 = 975 % 10.0% X 693 & 188 Schedule of Payables Year 2 payme 1 of 1 1 * Answer is complete but not entirely correct. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. does NOT prepare reversing entries. Date Debit Credit 1/27/Year 2 39,000 Account title Notes payable - Rochester Interest payable Interest expense Cash 567 693 % 40,260