Required information Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1 Skip to...

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Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1

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Tyrell Company entered into the following transactions involving short-term liabilities.

Year 1

April 20	Purchased $37,000 of merchandise on credit from Locust, terms n/30.
May 19	Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $2,000 in cash.
July 8	Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11%, $63,000 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 $30,000 cash from Fargo Bank by signing a 60-day, 6%, $30,000 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.

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. Vote: 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. 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your intermediate calculations. Journal entry worksheet 8 Purchased $37,000 of merchandise on credit from Locust, terms n/30. Note: Enter debits before credits

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