Tyrell Co. entered into the following transactions involving short-term liabilities in 2015 and 2016.
2015
Apr. 20 Purchased $40,250 of merchandise on credit from Loco, terms n/30. Tyrell uses the perpetual inventory system.
May 19 Replaced the April 20 account payable to Loco with a 90-day, $35,000 note bearing 10% annual interest along with paying $5,250 in cash.
July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9% interest-bearing note with a face value of $80,000.
___?___ Paid the amount due on the note to Loco at the maturity date.
___?___ Paid the amount due on the note to NBR Bank at the maturity date.
Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $42,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
2016
___?___ Paid the amount due on the note to Fargo Bank at the maturity date.
Required
1. Determine the maturity date for each of the three notes described.
2. Determine the interest due at maturity for each of the three notes. (Assume a 360-day year.)
3. Determine the interest expense to be recorded in the adjusting entry at the end of 2015.
4. Determine the interest expense to be recorded in 2016.
5. Prepare journal entries for all the preceding transactions and events for years 2015 and 2016?