1) | Maturity date | ||||||||
locust | NBR | fargo | |||||||
date of the note | 19-May | 8-Jul | 28-Nov | ||||||
term of note | 90 | 120 | 60 | ||||||
maturity date | 17-Aug | 5-Nov | 27-Jan | ||||||
2) | interest due at maturity | ||||||||
principal | * | Rate | * | time | = | interest | |||
locust | 35,000 | * | 8% | * | 90/360 | = | 700 | ||
NBR | 63,000 | * | 11% | * | 120/360 | = | 2310 | ||
Fargo | 30,000 | * | 7% | * | 60/360 | = | 350 | ||
3) | Amount in adjusting entry | ||||||||
Fargo Bank | |||||||||
principal | * | Rate | * | time | = | interest | |||
interest to be acccrued in 2016 | 30,000 | * | 7% | * | 33/360 | = | 193 | ||
4) | interest expense to be recorded in 2017 | ||||||||
principal | * | Rate | * | time | = | interest | |||
interest to recorded in 2018 | 30,000 | * | 7% | * | 27/360 | = | 158 | ||
Journal entries | |||||||||
Date | Accounting titles & Explanations | Debit | Credit | ||||||
2016 | |||||||||
20-Apr | inventory | 35,500 | |||||||
Accounts payable | 35,500 | ||||||||
19-May | Accounts payable | 35,500 | |||||||
cash | 500 | ||||||||
notes payable | 35,000 | ||||||||
8-Jul | Cash | 63,000 | |||||||
notes payable | 63,000 | ||||||||
17-Aug | notes payable | 35,000 | |||||||
interest expense | 700 | ||||||||
cash | 35,700 | ||||||||
5-Nov | notes payable | 63,000 | |||||||
interest expense | 2,310 | ||||||||
cash | 65,310 | ||||||||
28-Nov | Cash | 30,000 | |||||||
notes payable | 30,000 | ||||||||
31-Dec | interest expense | 193 | |||||||
interest payable | 193 | ||||||||
2017 | |||||||||
27-Jan | notes payable | 30,000 | |||||||
interest payable | 193 | ||||||||
interest expense | 158 | ||||||||
cash | 30,350 | ||||||||
Problem 9-1A Short-term notes payable transactions and entries LO P1 [The following information applies to the...
Problem 11-1A 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 liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $500 in cash. July 8 Borrowed...
Problem 11-1A 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 liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $500 in cash. July 8 Borrowed...
Problem 11-1A 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 liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $500 in cash. July 8 Borrowed...
XI Required information Problem 9-1A 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 liabilities. Year 1 Apr. 20 Purchased $39,000 of merchandise on credit from Locust, terms n/30. 19 Replaced the April 20 account payable to Locust with a 90-day, 98, $35,000 note payable along with paying $4, 000 in cash. May July 8 Borrowed $57,000 cash from NBR Bank by signing...
Required information Problem 9-1A 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 liabilities. Year 1 Apr. 20 Purchased $35,500 of merchandise on credit from Locust, terms n/30 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $500 in cash 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10% ,...
Required information Problem 11-1A 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 liabilities Year 1 Apr. 20 Purchased 538,500 of merchandise on credit from Locust, teras n/30. May 19 Replaced the April 20 account payable to Locust with a 90 day, 8%, $35,000 note payable along with paying $3,500 in cash. July 3 Borrowed 554,000 cash from NBR Bank by signing a...
Problem 9-1A Short-term notes payable transactions and entries LO P1 Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 10% annual interest along with paying $5,250 in cash. 150 X 60 July 8 Borrowed $80,000 cash from NBR Bank by...
Required information Problem 9-1A 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 liabilities. Year 1 Apr. 20 Purchased $35,500 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 $500 in cash 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day,...
U counting- 2 https/blackboard.cpp -Homework Saved Problem 9-1A 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 liabilities in 2017 and 2018. 2017 Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. . May 19 Replaced the Apr 11 20 account payable to Locust with a 90-day, $35,000 note bearing 10% annual interest along...
x PlObleln D SHO-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 liabilities Year 1 Apr. 20 Purchased $38,s00 of merchandise on credit from Locust, terms n/30. 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $ 35 ,000 note payable along with paying $3,500 in cash 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%,...