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, terma n/30. Tyrell uses the perpetual inventory system. Nay 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing annual interest along with paying $3,500 in cash. July 8 Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12 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. 7 Interest-bearing note with a face value of $24,000. Dee. 31 Recorded an adjusting entry for accrued interest on the note to Yargo Bank 2017 Paid the amount due on the note to Fargo Bank at the maturity date. 5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet Purchased $38,500 of merchandise on credit from Locust, terms 1/30. Tyrell uses the perpetual inventory system. Note: Enter debits before credits Date General Journal Debit Credit

Answer 1

Answer 1:

Date General Journal Debit Credit Merchandise Inventory $38,500 Apr. 20, 2016 Accounts Payable $38,500 |(to record purchase of inventory on account)