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 $38,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $3,000 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 10%, $63,000 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 $24,000 cash from Fargo Bank by signing a 60-day, 6%, $24,000 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.

Answer 1

	Locust	NBR Bank	Fargo Bank
Maturity Date	Aug 17	Nov 05	Jan 27
	Principal	Rate	Time	Interest
Locust	$          35,000	8%	90	$             700
NBR Bank	$          63,000	10%	120	$          2,100
Fargo Bank	$          24,000	6%	60	$             240

	Principal	Rate	Time	Interest
Interest Accrued Year 1	$       24,000	6%	33	$             132
	Principal	Rate	Time	Interest
Interest Year 2	$       24,000	6%	27	$             108

Date	Account Titles	Debit	Credit
Apr-20	Inventory	$            38,000
	Accounts Payable		$              38,000
May-19	Accounts Payable	$            38,000
	Cash		$                3,000
	Notes Payable-Locust		$              35,000
Jul-08	Cash	$            63,000
	Notes Payable-NBR bank		$              63,000
Aug-17	Notes Payable-Locust	$            35,000
	Interest Expense	$                  700
	Cash		$              35,700
Nov-05	Notes Payable-NBR Bank	$            63,000
	Interest Expense	$              2,100
	Cash		$              65,100
Nov-28	Cash	$            24,000
	Notes Payable-Fargo		$              24,000
Dec-31	Interest Expense	$                  132
	Interest Payable		$                   132
Year 2
Jan-27	Notes Payable-Fargo	$            24,000
	Interest Payable	$                  132
	Interest Expense	$                  108
	Cash		$              24,240