Question
Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $38,000 of merchandise on credit from Locust,
Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016
Apr. | 20 | Purchased $38,000 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. | ||
May | 19 | Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $3,000 in cash. | ||
July | 8 | Borrowed $69,000 cash from NBR Bank by signing a 120-day, 11% interest-bearing note with a face value of $69,000. | ||
__?__ | Paid the amount due on the note to Locust at the maturity date. | |||
__?__ | Paid the amount due on the note to NBR Bank at the maturity date. | |||
Nov. | 28 | Borrowed $33,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $33,000. | ||
Dec. | 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
2017
__?__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
1. Determine the maturity date for each of the three notes described.
2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.)
3. Determine the interest expense to be recorded in the adjusting entry at the end of 2016. (Do not round your intermediate calculations. Use 360 days a year.)
4. Determine the interest expense to be recorded in 2017. (Do not round intermediate calculations and round your final answers to the nearest whole dollar. Use 360 days a year.)
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