Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $39,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 91, $35,000 note payable along with paying $4,000 in cash. July 8 Borrowed $60,000 cash from NBR Bank by signing a 120-day, 111, $60,000 note payable. _7 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 $30,000 cash from Fargo Bank by signing a 60-day, 70, $30,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 2 Paid the amount due on the note to Fargo Bank at the maturity date. 1 Purchased $39,000 of merchandise on credit from Locust, terms n/30. 2 Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $4,000 in cash. 3 Borrowed $60,000 cash from NBR Bank by signing a 120- day, 11%, $60,000 note payable. 4 Paid the amount due on the note to Locust at the maturity date. 5 Paid the amount due on the note to NBR Bank at the maturity date. 5 Paid the amount due on the note to NBR Bank at the maturity date. 6 Borrowed $30,000 cash from Fargo Bank by signing a 60- day, 7%, $30,000 note payable. Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 8 Paid the amount due on the note to Fargo Bank at the maturity date. Journal entry worksheet