Warner Co. entered into the following transactions involving short-term liabilities in 2015 and 2016. 2015 Apr. 22

Question:

Warner Co. entered into the following transactions involving short-term liabilities in 2015 and 2016.
2015
Apr. 22 Purchased $5,000 of merchandise on credit from Fox-Pro, terms n/30. Warner uses the perpetual inventory system. May 23 Replaced the April 22 account payable to Fox-Pro with a 60-day, $4,600 note bearing 15% annual interest along with paying $400 in cash.
July 15 Borrowed $12,000 cash from Spring Bank by signing a 120-day, 10% interest-bearing note with a of $12,000.
___?___ Paid the amount due on the note to Fox-Pro at Paid the amount due on the note to Spring Bank at 6 Borrowed $8,000 cash from City Bank by signing a 45-day, 9% interest-bearing note with a of $8,000.
31 Recorded an adjusting entry for accrued interest on the note to City Bank.
2016
___?___ Paid the amount due on the note to City Bank at Determine the date for each of the three notes described.
2. Determine the interest due at 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?
Face Value
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Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...