The January 1, Year 1 trial balance for the Smith Company is found on the trial balance tab. The beginning balances are assumed. Smith Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $50,750 of merchandise on credit from Lee, terms n/30. May 19 Replaced the April 20 account payable to Lee with a 90-day, 6%, $36,000 note payable along with paying $14,750 in cash. July 8 Borrowed $108,000 cash from NBR Bank by signing a 120-day, 9%, $108,000 note payable. August 17 Paid the amount due on the note to Lee at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $66,000 cash from Albany Bank by signing a 60-day, 8%, $66,000 note payable. December 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. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of 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.

The January 1 , Year 1 trial balance for the Smith Company is found on the trial balance tab. The beginning balances are assumed. Smith Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $50,750 of merchandise on credit from Lee, terns n/30. May 19 Replaced the April 20 account payable to Lee with a 90 -day, 6s, $36,000 note payable atong with paying July 8 Borrowed $108,000 cash from NBR Bank by signing a 120-day, 9s,$108,000 note payable. August 17 Paid the amount due on the note to Lee ot the motidrity date. Novenber 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $66, age December 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. Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest' tab to ensure the accuracy of your entries