Question

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%, $54,000 note payable. 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. Мay July Nov. 28 Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 6%, $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 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round your intermediate calculati Use 360 days a year.) Year End Accrual Required For Fargo Bank Principal x Rate Time Interest Interest to be accrued in Year 1 $ 38,500 x 30/360 x < Prev 4 of 5 Next >

Answer 1

Requirenent 3 Year End Accrual Required for: Fargo Bank Principal X Rate x Time - Interest Interest to be accrued in Year 1 27,000 % 6 % 33/360 149