Tyrell Co entered into the following transactions involving short term liabilities Year 1 Apr 20 Purchased $37,000 of merchandise on credit from Locust, terms n 30 May 19 Replaced the April 20 account payable to Locust with a 90 day, 9 , $35,000 note payable along with paying $2,000 in cash July 8 Borrowed $69,000 cash from NBR Bank by signing a 120 day, 10 , $69,000 note payable 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 , $33,000 note payable Dec 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank Year 2 Paid the amount due on the note to Fargo Bank at the maturity date Required 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 recorded in the adjusting entry at the end of Year 1 (Do not round your intermediate calculations Use 360 days a year ) 4 Determine the interest expense recorded in Year 2 (Do not round intermediate calculations and round your final answers to nearest whole dollar Use 360 days a year )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 04, 2024

Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $37,000 of merchandise on credit from Locust, terms n/30. May

Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1

Apr.	20	Purchased $37,000 of merchandise on credit from Locust, terms n/30.
May	19	Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $2,000 in cash.
July	8	Borrowed $69,000 cash from NBR Bank by signing a 120-day, 10%, $69,000 note payable.
__?__		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%, $33,000 note payable.
Dec.	31	Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Year 2

__?__

Paid the amount due on the note to Fargo Bank at the maturity date.

Required: 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 recorded in the adjusting entry at the end of Year 1. (Do not round your intermediate calculations. Use 360 days a year.)

4. Determine the interest expense recorded in Year 2. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)