Question
Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $39,500 of merchandise on credit from Locust, terms n/30. May
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 20 | Purchased $39,500 of merchandise on credit from Locust, terms n/30. |
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May 19 | Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying $4,500 in cash. |
July 8 | Borrowed $69,000 cash from NBR Bank by signing a 120-day, 10%, $69,000 note payable. |
__?question mark__ | Paid the amount due on the note to Locust at the maturity date. |
__?question mark__ | Paid the amount due on the note to NBR Bank at the maturity date. |
November 28 | Borrowed $21,000 cash from Fargo Bank by signing a 60-day, 7%, $21,000 note payable. |
December 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
Year 2
__?question mark__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
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2. Determine the interest due at maturity for each of the three notes.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.
4. Determine the interest expense recorded in Year 2.
Note: Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.
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