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 $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 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 $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 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. Required: 1. Determine the maturity date for each of the three notes described. Locust NBR Bank Fargo Bank Maturity date

Answer 1

Maturity date for each of the notes described:

	Locust	NBR Bank	Fargo Bank
Maturity date	August 17	November 5	January 27

• Locust notes payable was signed on May 19 and has 90 days duration. 90 days from May 19 end on August 17. Hence, the maturity date is August 17.
• NBR notes payable was signed on July 8 and has duration of 120 days. the maturity of this notes payable is on November 5 (120days from July 8).
• Fargo bank notes payable was signed on November 28 for 60days. The date after 60 days is January 27, which is also the maturity date for the note payable.