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, 7%, $35,000 note payable along with paying $4,000 in cash.
July		8		Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 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, 9%, $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.

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.)

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, 7%, $35,000 note payable along with paying $4,000 in cash.
July		8		Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 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, 9%, $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.

5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.)

• 1. Purchased $39,000 of merchandise on credit from Locust, terms n/30.
• POSSIBLE INSERTS CAN BE:
• Accounts payableLocust
• Accrued payroll payable
• Bonus payable
• Cash
• Cost of goods sold
• Deferred income tax liability
• Earned services revenue
• Earned ticket revenue
• Employee benefits plan payable
• Employee bonus expense
• Employee fed. inc. taxes payable
• Employee life insurance payable
• Employee medical insurance payable
• Employee union dues payable
• Estimated warranty liability
• Federal unemployment taxes payable
• FICAMedicare taxes payable
• FICASocial sec. taxes payable
• Income taxes expense
• Income taxes payable
• Interest expense
• Interest payable
• Merchandise inventory
• Notes payableFargo Bank
• Notes payableLocust
• Notes payableNBR Bank
• Payroll taxes expense
• Repair parts inventory
• Salaries expense
• Salaries payable
• Sales
• Sales salaries expense
• Sales taxes payable
• State unemployment taxes payable
• Unearned services revenue
• Unearned ticket revenue
• Vacation benefits expense
• Vacation benefits payable
• Wages expense
• Warranty expense
• 2. May: 19- Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $4,000 in cash.
• 3.Jul 8- Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 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.
• 6.Borrowed $33,000 cash from Fargo Bank by signing a 60-day, 9%, $33,000 note payable.
• 7.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.