This problem has several parts for it to be fully completed.
PART I:
Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms n30. Clark uses the perpetual inventory system.
May 19. Replaced the April 20 account payable to Walsh with a 90-day, $37,000 note bearing 14% annual interest along with paying $12,250 in cash.
Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.
Aug. 17. Paid the amount due on the note to Walsh at the maturity date.
Nov. 5. Paid the amount due on the note to NJR Bank at the maturity date.
Nov. 28. Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $57,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
PART II:
PART III:
GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark Co. entered into the following transactions involving short-term liabilitles. (Use 360 days a year.) Year 1 Apr. May July Aug NOV. Nov. Dec. 20 Purchased $49,250 of merchandise on credit from Walsh, terms n/30. 19 Replaced the April 2e account payable to walsh with a 90-day, 14%, $37,eee note payable along with paying $12,250 in cash. 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,880 note payable. 17 Paid the amount due on the note to walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Year 2 payment General Requirement General Trial Balance Schedule of Calculation of Journal Ledger Payables Interest Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 > Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms 1/30. Clark uses the perpetual inventory system. Note: Enter debits before credits. Date Account Title Debit Credit Apr 20 Recordant Coronto VDAlium GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark 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 $49,250 of merchandise on credit from Walsh, terms n/30. 19 Replaced the April 2e account payable to walsh with a 90-day, 14%, $37,eee note payable along with paying $12,25e in cash. 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,888 note payable. 17 Paid the amount due on the note to Walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Requirement General General Trial Balance Schedule of Calculation of Year 2 Journal Ledger Payables Interest payment Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. Clark Co. Calculation of interest expense August 17 - Walsh note: Principal Interest rate Number of days interest to be recorded in Year 1 Total interest expense - Year 1 Total interest expense - Year 1 Schedule of Payables Year 2 payment > GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 Apr. May cash. July Aug. NOV. Nov. Dec. 20 Purchased $49,250 of merchandise on credit from Walsh, terms n/38. 19 Replaced the April 28 account payable to walsh with a 90-day, 14%, $37,00e note payable along with paying $12,25e in 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,808 note payable. 17 Paid the amount due on the note to Walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Interest Requirement General General Schedule of Calculation of Trial Balance Year 2 Journal Ledger Payables payment Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. Wright Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2 Calculation of Interest Year 2 payment GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark Co. entered into the following transactions involving short-term liabilitles. (Use 360 days a year.) Year 1 Apr. May July Aug NOV. Nov. Dec. 20 Purchased $49,250 of merchandise on credit from Walsh, terms n/30. 19 Replaced the April 2e account payable to walsh with a 90-day, 14%, $37,eee note payable along with paying $12,250 in cash. 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,880 note payable. 17 Paid the amount due on the note to walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Year 2 payment General Requirement General Trial Balance Schedule of Calculation of Journal Ledger Payables Interest Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 > Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms 1/30. Clark uses the perpetual inventory system. Note: Enter debits before credits. Date Account Title Debit Credit Apr 20 Recordant Coronto VDAlium GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark 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 $49,250 of merchandise on credit from Walsh, terms n/30. 19 Replaced the April 2e account payable to walsh with a 90-day, 14%, $37,eee note payable along with paying $12,25e in cash. 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,888 note payable. 17 Paid the amount due on the note to Walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Requirement General General Trial Balance Schedule of Calculation of Year 2 Journal Ledger Payables Interest payment Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. Clark Co. Calculation of interest expense August 17 - Walsh note: Principal Interest rate Number of days interest to be recorded in Year 1 Total interest expense - Year 1 Total interest expense - Year 1 Schedule of Payables Year 2 payment > GL901 - Based on Problem 9-1A LO C2, P1 The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 Apr. May cash. July Aug. NOV. Nov. Dec. 20 Purchased $49,250 of merchandise on credit from Walsh, terms n/38. 19 Replaced the April 28 account payable to walsh with a 90-day, 14%, $37,00e note payable along with paying $12,25e in 8 Borrowed 599,000 cash from NJR Bank by signing a 12e-day, 9%, $99,808 note payable. 17 Paid the amount due on the note to Walsh at the maturity date. 5 Paid the amount due on the note to NJR Bank at the maturity date. 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 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. Interest Requirement General General Schedule of Calculation of Trial Balance Year 2 Journal Ledger Payables payment Prepare the January 27, Year 2 journal entry to record the payment of the Fargo note at maturity. Wright Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2 Calculation of Interest Year 2 payment
