Question

Required information (The following information applies to the questions displayed below. Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018. 2017 Apr. 20 Purchased $35,000 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $0 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $63,000. 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 $33,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $33,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2018 _?_ Paid the amount due on the note to Fargo Bank at the maturity date. 3. Determine the interest expense to be recorded in the adjusting entry at the end of 2017. (Do not round your intermediate calculations. Use 360 days a year.) Year end accrual required for: Principal Fargo Bank X Rate x Time % x = Interest Interest to be accrued in 2017

Answer 1

3
Year end accrual required for:	Fargo Bank
	Principal	X	Rate	X	Time	=	Interest
Interest to be accrued in 2017	33000	X	8%	X	33/360	=	242
4
Year end accrual required for:	Fargo Bank
	Principal	X	Rate	X	Time	=	Interest
Interest to be recorded in 2018	33000	X	8%	X	27/360	=	198