Problem 9-1A (Algo) Short-term notes payable transactions and entries LO P1

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[The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1

April 20	Purchased $40,000 of merchandise on credit from Locust, terms n/30.
May 19	Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $5,000 in cash.
July 8	Borrowed $63,000 cash from NBR Bank by signing a 120-day, 12%, $63,000 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.
November 28	Borrowed $33,000 cash from Fargo Bank by signing a 60-day, 6%, $33,000 note payable.
December 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.

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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 Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $40,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $5,000 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 12%, $63,000 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. November 28 Borrowed $33,000 cash from Fargo Bank by signing a 60-day, 6%, $33,000 note payable. December 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. Problem 9-1A (Algo) Part 2 2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.) x Time = Interest Principal $ Rate 7% 35,000 90/360 Locust NBR Bank Fargo Bank $ 42,000 6% 60/360 Problem 9-1A (Algo) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.) Year End Accrual Required For: Principal * Fargo Bank Rate Time % = Interest Interest to be accrued in Year 1 = II 4. Determine the interest expense recorded in Year 2. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.) Year End Accrual Required For: Fargo Bank Time Principal X Rate x Interest Interest to be recorded in Year 2 x X % = 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 8 > > Purchased $40,000 of merchandise on credit from Locust, terms n/30. Note: Enter debits before credits. General Journal Debit Credit Date April 20 Record entry Clear entry View general journal Journal entry worksheet Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $5,000 in cash. Note: Enter debits before credits. General Journal Debit Credit Date May 19 Record entry Clear entry View general journal Journal entry worksheet Paid the amount due on the note to Locust at the maturity date. Note: Enter debits before credits. Date General Journal Debit Credit August 17 Record entry Clear entry View general journal Journal entry worksheet Paid the amount due on the note to NBR Bank at the maturity date. Note: Enter debits before credits. General Journal Debit Credit Date November 05 Record entry Clear entry View general journal Journal entry worksheet Paid the amount due on the note to Fargo Bank at the maturity date. Note: Enter debits before credits. General Journal Debit Credit Date January 27 Record entry Clear entry View general journal