Business, 03.04.2020 22:50 keeks11

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 $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 note payable. __

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Answer from: Vicky22Shz

Solution:

1)Maturity date

locustNBRfargo

date of the note 19-May8-Jul28-Nov

term of note 90 12060

maturity date 17-Aug 5-Nov27-Jan

2)interest due at maturity

principal*Rate*time=interest

locust35,000*8%*90/360=700

NBR63,000*11%*120/360=2310

Fargo33,000*7%*60/360=385

3)Amount in adjusting entry

33,000*7%*33/360

= 211.75

principal*Rate*time=interest

interest to be acccrued33,000*7%*33/360=211.75

4)interest expense to be recorded in 2017

198

principal*Rate*time=interest

interest to recorded in 201833,000*7%*27/360=173.25

Journal entries

DateAccounting titles & ExplanationsDebitCredit

2016

20-Apr inventory 38,000

Accounts payable 38,000

19-May Accounts payable 38,000

cash 3,000

notes payable 35,000

8-Jul Cash 63,000

notes payable 63,000

17-Aug notes payable 35,000

interest expense 700

cash 35,700

5-Nov notes payable 63,000

interest expense 2,310

cash 65,310

28-Nov Cash 33,000

notes payable 33,000

31-Dec interest expense 211.75

interest payable 211.75

2017

27-Jannotes payable 33,000

interest payable 211.75

interest expense 173.25

cash 33,385

Answer from: Quest

Hi! so let’s say you buy two cds that’s a total of 20$ & two books , which is 12$, giving you the sum of 32$ , i would write it as ; c2+b2=32hope this : ) good luck!

Answer from: Quest

a dunce cap for you, you assed this 2 weeks ago

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Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20...

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