Required information Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 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. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. December 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. Problem 9-1A (Static) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round your intermediate calculations. Use 360 days a year. Year End Accrual Required For: Fargo Bank Principal Rate x x Time Interest to be accrued in Year 1 x % x = Interest
Required information Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 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. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. December 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. Problem 9-1A (Static) Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round your intermediate calculations. Use 360 days a year. Year End Accrual Required For: Fargo Bank Principal Rate x x Time Interest to be accrued in Year 1 x % x = Interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hardev
![Required information
Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 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.
November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable.
December 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.
Problem 9-1A (Static) Part 3
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round your intermediate calculations. Use 360 days a year.
Year End Accrual Required For:
Fargo Bank
Principal
Rate
x
x
Time
Interest to be accrued in Year 1
x
% x
=
Interest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea428176-19fe-4527-bf14-c136e32331ab%2Fa0656179-98db-4649-b86f-40277aa9f1e8%2Fztmskx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 9-1A (Static) Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 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.
November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable.
December 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.
Problem 9-1A (Static) Part 3
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round your intermediate calculations. Use 360 days a year.
Year End Accrual Required For:
Fargo Bank
Principal
Rate
x
x
Time
Interest to be accrued in Year 1
x
% x
=
Interest
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education