Question

XI Required information Problem 9-1A Short-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 $39,000 of merchandise on credit from Locust, terms n/30. 19 Replaced the April 20 account payable to Locust with a 90-day, 98, $35,000 note payable along with paying $4, 000 in cash. May July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 128, $57,000 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 $27,000 cash from Fargo Bank by signing a 60-day, 8%, $27000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Falgo Bank. Year 2 Paid the amount due on the note to Fargo Bank at the maturity date. Problem 9-1A Part 5 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.) View transaction list

Answer 1

Answer: Credit Date Apr 20 Debit 39,000 39,000 May 19 39,000 4,000 35,000 July 8 57,000 57,000 Aug 17 35,000 788 35,788 General Journal Inventory Accounts Payable Accounts Payable Cash Notes Payable Cash Notes Payable Notes Payable Interest Expense ($35,000 * 9% * 90/360) Cash Notes Payable Interest Expense ($57,000 * 12% * 90/360) Cash Cash Notes Payable Interest Expense ($27,000 * 8% * 33/360) Interest Payable Notes Payable Interest Payable Interest Payable ($27,000 * 8% * 27/360) Cash Nov 5 57,000 2,280 59,280 Nov 28 27,000 | 27,000 Dec 31 198 198 Jan 27 27,000 198 162 27,360