Question
Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. 2012 Apr. 20 Purchased $38,000 of merchandise on credit from Locust,
Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. |
2012 | |
Apr. 20 | Purchased $38,000 of merchandise on credit from Locust, terms are 1/10, 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 8% annual interest along with paying $3,000 in cash. |
July 8 | Borrowed $60,000 cash from National Bank by signing a 120-day, 11% interest-bearing note with a face value of $60,000. |
Aug. 17 | Paid the amount due on the note to Locust at the maturity date. |
Nov. 5 | Paid the amount due on the note to National Bank at the maturity date. |
Nov. 28 | Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $27,000. |
Dec. 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
2013 |
Jan. 27 | Paid the amount due on the note to Fargo Bank at the maturity date.
|
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