The January 1, Year 1 trial balance for the Walker Company is found on the trial balance tab. The beginning balances are assumed. Mitchell Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $43,250 of merchandise on credit from Allen, terms n/30. May 19 Replaced the April 20 account payable to Allen with a 90-day, 6%, $37,000 note payable along with paying $6,250 in cash. July 8 Borrowed $99,000 cash from AKR Bank by signing a 120-day, 9%, $99,000 note payable. August 17 Paid the amount due on the note to Allen at the maturity date. November 5 Paid the amount due on the note to AKR Bank at the maturity date. November 28 Borrowed $60,000 cash from Fargo Bank by signing a 60-day, 6%, $60,000 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 Payables Calculation of Interest Year 2 payment 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 General Journal tab - Journalize the transactions related to the notes and accounts payable of Mitchell Co. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Calculation of interest tab Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Journal entry worksheet < 1 2 3 4 5 6 7 April 20. Purchased $43,250 of merchandise on credit from Allen, terms n/30. Note: Enter debits before credits. Date April 20 Account Title Debit Credit Record entry Clear entry View general journal August 17- Allen note: Principal Interest rate Mitchell Company Calculation of interest expense Number of days' interest to be recorded in Year 1 Total interest expense - Year 1