The January 1, Year 1 trial balance for the North Company is found on the trial balance tab. The beginning balances are assumed King Company entered into the following transactions involving short-term liabilities (Use 360 days a year.) Year 1 April 20 Purchased 546,250 of merchandise on credit from Turner, terns 1/30. May 19 Replaced the April 20 account payable to Turner with a 90-day, 8%, $39,000 note payable along with paying $7,250 in cash. July 8 Borrowed $117,000 cash from NPR Bank by signing a 120-day, 9%, $117,000 note payable, August 17 Paid the amount due on the note to Turner at the maturity date. November 5 Paid the amount due on the note to Bank at the maturity date, November 28 Borrowed $75,000 cash from Fargo Bank by signing a 60-day, 10%, $78,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date: Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Prepare the journal entries related to notes and accounts payable Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries Journal entry worksheet April 20. Purchased $46,250 of merchandise on credit from Turner, terms n/30. Note: Enter debits before credits. Account Title Debit Credit Date April 20 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 May 19. Replaced the April 20 account payable to Turner with a 90-day, 8%, $39,000 note payable along with paying $7,250 in cash. Note: Enter debits before credits. Date Account Title Debit Credit May 19 Record entry Clear entry View general journal Journal entry worksheet August 17. Paid the amount due on the note to Turner at the maturity date. Note: Enter debits before credits. Date Account Title Debit Credit August 17 Record entry Clear entry View general journal Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment No input required. Year 2018 represents Year 1 from the problem statement North Company Jy 01, 2021 Account Title Debat Credit 5 51.500 7.500 Cash Merchandise inventory North Capital Total 59.000 59.000 59000 5 Calculation of interest expense August 17 - Turner note: Principal Interest rate Number of days' interest to be recorded in Year 1 Interest rate Number of days' interest to be recorded in Year 1 5 Total interest expense - Year 1 Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. North NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2
