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 | 60,000 | * | 11% | * | 120/360 | = | 2200 | ||
Fargo | 27,000 | * | 7% | * | 60/360 | = | 315 | ||
3) | Amount in adjusting entry | ||||||||
Fargo Bank | |||||||||
principal | * | Rate | * | time | = | interest | |||
interest to be acccrued in 2016 | 27,000 | * | 7% | * | 33/360 | = | 173 | ||
4) | interest expense to be recorded in 2017 | ||||||||
principal | * | Rate | * | time | = | interest | |||
interest to recorded in 2018 | 27,000 | * | 7% | * | 27/360 | = | 142 | ||
Journal entries | |||||||||
Date | Accounting titles & Explanations | Debit | Credit | ||||||
2016 | |||||||||
20-Apr | inventory | 37,500 | |||||||
Accounts payable | 37,500 | ||||||||
19-May | Accounts payable | 37,500 | |||||||
cash | 2,500 | ||||||||
notes payable | 35,000 | ||||||||
8-Jul | Cash | 60,000 | |||||||
notes payable | 60,000 | ||||||||
17-Aug | notes payable | 35,000 | |||||||
interest expense | 700 | ||||||||
cash | 35,700 | ||||||||
5-Nov | notes payable | 60,000 | |||||||
interest expense | 2,200 | ||||||||
cash | 62,200 | ||||||||
28-Nov | Cash | 27,000 | |||||||
notes payable | 27,000 | ||||||||
31-Dec | interest expense | 173 | |||||||
interest payable | 173 | ||||||||
2017 | |||||||||
27-Jan | notes payable | 27,000 | |||||||
interest payable | 173 | ||||||||
interest expense | 142 | ||||||||
cash | 27,315 | ||||||||
Required information The following information applies to the questions displayed below] Tyrell Co. entered into the...
Required information [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 $38,500 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 78 annual interest along with paying $3,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a...
Required information [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 $37,588 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 9% annual interest along with paying $2,5ee in cash. July 8 Borrowed $51,800 cash from NBR Bank by signing a...
21 Required Information The following information applies to the questions displayed below.) Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 Part 1 of 5 Doints 8 02:06 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 8% annual interest along with paying $3,500 in cash. July 8 Borrowed...
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 $38,500 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 8 annual interest along with paying $3,500 in cash. July 8 Borroved $66,000 cash from NBR Bank by signing a 120-day, 121...
Required information [The following information applies to the questions displayed belowj 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, 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 8% annual interest along with paying $3,500 in cash July 8 Borrowed $51,000 cash from NBR Bank by signing a...
Required information (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 $35,000 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 8% annual interest along with paying $0 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a...
Required information [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 $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 8% annual interest along with paying $500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a...
Required information [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 $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 8% annual interest along with paying $500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a...
Required information [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 $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 8% annual interest along with paying $500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a...
equired information [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 $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 8% annual interest along with paying $500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a...