Question

Tyrell Co, entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr. 20 Purchased $38.500 of merchandise on credit from Locust, terns 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 81 annual interest along with paying $3,500 in cash. July 8 Borrowed $66,000 cash from NSR Bank by signing a 120-day, 128 interest-bearing note with a face value of $66,000. 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. Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 71 interest-bearing note with a face value of $24,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Pargo Bank. 2017 _?__ Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense to be recorded in 2017. (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 Principal X Rate x Time Interest Interest to be recorded in 2017

Answer 1

4)

Interest in 2017:

Year end accrual required for:	Fargo Bank
	Principal	*	Rate		*	Time	*	Interest
Interest to be recorded in 2017	$24,000	*	7	%	*	2/12.	*	$280