Question

payabie transactions and entries LO P (The following information applies to the questions displayed below Tyrell Co entered into the following transactions involving short term liabities Year 1 Apr. 20 Purchaned S38,500 of xerchandise on credit from Locust, tems n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 83, $35, 000 note payable along with paying $3,500 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 124, $54,000 note payable. Paid the amount due on the note to Locust at the saturity daté. Paid the amount due on the note to NBR Bank at the naturity date. Nov. 28 Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 61, $27,000 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. Problem 11-1A Part 4 4. Determine the interest expense recorded in Year 2. (Do not round intermediete calculetions and round your finel answers to nearest whole dollar. Use 360 deys a year.) Year end accrual required for: Fargo Bank Principal Rate Time Interest x Interest to be recorded in Year 2 %x <Prev 4 5 Next of 5 A WARNING

Answer 1

(9 Determination of interestesebense hocessed in yasa Interest » 97000 x 6% x 27 $121.5 PPPPPP Year and accurual secquired for Fargo Bank Principal & Rate & Time & Interest Interest to be recordedin har 2 27000 x 6% X 27 - $121.5 (5) Journal entries for all the proceeding transactions and events I General Journal Rebit(8) Gredite year 1 I Merchandise inventory 38,500 Accounts Payable (docust) 38,500 (Being purchased merchandise on credit from docust) Accounts Payable docust) 38,500 Notes Payable (docust) 35000 Cash 3500 Apr, 20 Jedygth Being note giuon along with each) 54,000 919.75 + 54,000 | Notes Payable (NBR Bank) (Being note drawn on betrowing) Notes Payable (doust) 35000 Intercost a pensesſsscoox8lX90) 700 Being amount due todorust is paid Notes payable (AN. BR Bank) 54,000 Interest expense(54000x 12). X 1200 2160 a Cash Cash 360 35,700 th (Bei Norgth 56,160 (Being amount due to NBR Bank is paid)

Norg8th 18115 1 Year 2 General Tournal Debit (6) Credelo Cash 27000 Notes Payable- 27000 Fargo Bank (Being amount borrowed from Bank) Dec 31st Interest expense (4) 121.5 Interest payable (Being adjustment entry for accrued interest recorded 27,000 Toretth Nortes Payable (Fargo Bank) Interest payal 121.5 Interest expense (3700 x6m *zz.) 148.5 (Being amount due to Forgo bankpaid) 27,270 Maturitydater doust :- Aug 17th (90 days from May 19th . NBR Bank :-** Now 5th (1ao days from July 8th Fargo Bank: **** Janath (60 days pominovary