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problem 4 Required information Problem 9-1A (Algo) Short-term notes payable...

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Accounting

problem 4
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Required information Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1 The following information applies to the questions displayed below) Tyrell Co entered into the following transactions involving short term tabilities Year 1 Apr. 20 Purchased $36,500 of merchandise on credit from Locust, terus w/30 May 19 Replaced the April 20 account payable to Locust with a 90-day, 9%, 335,000 note payable along with paying $1,500 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 111, $66,000 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 $30,000 cash from Fargo Bank by signing a 60-day, 8%, $10,000 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. mity date. Problem 9-1A (Algo) Part 4 4. Determine the interest expense recorded in Year 2 (Do not round intermediate calculations and round your final ontwers to nearest whole dollar. Use 360 days a year.) Year End Accrual Required for Principal X Rate Fargo Bank Time % Interest Interest to be recorded in Year 2 X

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