Question

The January 1, Year 1 trial balance for the Gonzalez Company is found on the trial balance tab. The beginning balances are assumec Wright Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year : Apr. May July Aug. Nov. Nov. Dec. 20 Purchased 542,250 of merchandise on credit from Hall, terms n/30. 19 Replaced the April 20 account payable to Hall with a 90-day, 85, $39,000 note payable along with paying $3,250 in cash. 8 Borrowed 593,600 cash from NOR Bank by signing a 120-day, 12%, 593,000 note payable. 17 Paid the amount due on the note to Hell at the maturity date. 5 Paid the amount due on the note to NOR Bank at the maturity date. 26 Borrowed $54,600 cash from Sacramento Bank by signing a 60-day, 126, 554,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Hall, te NOR Banke to Hell note payab2ble along with foramento Bankk at the matur date Year 2 Jan. 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance Schedule of Payables Calculation of Interest Year 2 payment Wright Co. Calculation of Interest expense August 17 Hall not Prindi Number of daysrest to be recorded in Yea Interest Pindal rutex days35 November 5 - NUR Bank note Principe Number of days to be record eres principale x days/360 of days to bere

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ANSWER

As per the given question,

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Calculation of interest:
Aug 17,Hall notes:
Principal					39000
Interest rate					8%
Number of days interest to be recorded in Year 1					90
Interest expense		(39000*8%*90/360)			780
Nov 5,NJR bank note:
Principal					93000
Interest rate					12%
Number of days interest to be recorded in Year 1					120
Interest expense		(93000*12%*120/360)			3720
Jan 27,Sacremento bank note:
Principal					54000
Interest rate					12%
Number of days interest to be recorded in Year 1
(Nov 28 to Dec 31)					34
Interest expense		(54000*12%*34/360)			612
Schedule of payables:
	Schedule of accounts payable
				$
Total accounts payable				0
	Schedule of notes payable
				$
Total notes payable				54000
(Sacremento bank due on year 2)
Year 2 payment:
Date	Account titles					Debit	Credit
1/27/Year 2	Interest expense		(54000*12%*26/360)			468
	Interest payable		(54000*12%*34/360)			612
	Note payable					54000
	Cash						55080
	(Note repaid on maturity)

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