The January 1, Year 1 trial balance for the North Company is found on the trial balance tab. The beginning balances are assumed. King 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 $46,250 of merchandise on credit from Turner, terms n/30. 19 Replaced the April 20 account payable to Turner with a 90-day, 81, $39,000 note payable along with paying $7.250 in cash. B Borrowed $117,000 cash from NMR Bank by signing a 120-day, 94, $117,000 note payable. 17 Paid the amount due on the note to Turner at the maturity date. 5 Paid the amount due on the note to NMR Bank at the maturity date. 28 Borrowed $78,000 cash from Fargo Bank by signing a 60-day, 109, $78,000 note payable. 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. King Co. $ 39,000 8.0% 90 $ 780 $ Calculation of interest expense August 17 - Turner note: Principal Interest rate Number of days' interest to be recorded in Year 1 Interest - Principal x rate x days/360 = November 5 - NMR Bank note: Principal Interest rate Number of days' interest to be recorded in Year 1 Interest - Principal x rate x days/360 = November 28 - Accrued interest - Fargo note: Principal Interest rate Number of days' interest to be recorded in Year 1 Interest - Principal x rate x days/360 = 117,000 9.0% 120 $ 3,510 Total interest expense - Year 1 $ 4,290 January 27, Year 2 - Interest expense - Fargo note: eBook General Journal General Ledger Requirement Trial Balance Schedule of Payables Calculation of Interest Year 2 payment oferences Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. North Company de NOT prepare reversing entries. Credit Date Account title 1/27/Year 2 Notes payable - Fargo Interest payable Interest expense Cash Debit 78,000 715 585 79,300 Calculation of Interest Yapment