Question

Required information [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 $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 99, $35,000 note payable along with paying $4,500 in cash. July 8 Borrowed $69,000 cash from NBR Bank by signing a 120-day, 11, $69,000 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. Nov. 28 Borrowed $21,000 cash from Fargo Bank by signing a 60-day, 7%, $21,000 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. 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 Purchased $39,500 of merchandise on credit from Locust, terms 1/30. Next >

Answer 1

journal entries for the tyrell co. are as follows,

date particulars debit credit

year-1

april-20 marchandise 39500

locust 39500

may-19 locust 39500

notes payable 35000

cash 4500

july-8 cash 69000

notes payable(NBR bank) 69000

august-18 notes payable (locust) 35000

interest (35000*9%)* 90/360 days 788

cash 35788

nov-5 notes payable(NBR bank) 69000

interest ( 11%) 2530

cash 71530

nov-28 cash 21000

notes payable 21000

dec.31 accrued interest (7% for 33 days) 135

interest payable 135

year-2

march-1 interest 245

notes payable 21000

cash 21245