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Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $37,500 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 $37,500 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 $2,500 in cash. | ||
July | 8 | Borrowed $69,000 cash from NBR Bank by signing a 120-day, 11%, $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 $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 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. |
1. Determine the maturity date for each of the three notes described.
Locust , NBR Bank , Fargo Bank
2. Determine the interest due at maturity for each of the three notes.
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
4. Determine the interest expense recorded in Year 2.
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