Tyrell Co. entered into the following transactions involving short-term liabilities in 2014 and 2015.     2014   Apr. 20   Purchased $36,500 of merchandise on credit from Locust, terms are 1/10, 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 $1,500 in cash. July 8   Borrowed $51,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $51,000. __?__   Paid the amount due on the note to Locust at the maturity date. __?__   Paid the amount due on the note to National Bank at the maturity date. Nov. 28   Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $27,000. Dec. 31   Recorded an adjusting entry for accrued interest on the note to Fargo Bank.     2015 __?__   Paid the amount due on the note to Fargo Bank at the maturity date.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Tyrell Co. entered into the following transactions involving short-term liabilities in 2014 and 2015.

   

2014  
Apr. 20  

Purchased $36,500 of merchandise on credit from Locust, terms are 1/10, 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 $1,500 in cash.

July 8  

Borrowed $51,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $51,000.

__?__   Paid the amount due on the note to Locust at the maturity date.
__?__   Paid the amount due on the note to National Bank at the maturity date.
Nov. 28  

Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $27,000.

Dec. 31   Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

   

2015
__?__   Paid the amount due on the note to Fargo Bank at the maturity date.

 

 

2015
?.
Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense to be recorded in 2015. (Do not round intermediate
calculations and round your final answers to nearest whole dollar. Use 360 days a
year.)
Year end accrual required for:
Fargo Bank
Principal
Rate
Time
Interest
Interest to be recorded in 2015
X.
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5 6
of 6 #
Transcribed Image Text:2015 ?. Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense to be recorded in 2015. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.) Year end accrual required for: Fargo Bank Principal Rate Time Interest Interest to be recorded in 2015 X. < Prev 5 6 of 6 #
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