! Required information [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 $37,000 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 $2,000 in cash. July 8 ? Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable. Paid the amount due on the note to Locust at the maturity date. November 28 Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8%, $30,000 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. 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Fargo Bank Principal x Rate x Time = Interest Interest to be accrued in Year 1 % ☐
! Required information [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 $37,000 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 $2,000 in cash. July 8 ? Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable. Paid the amount due on the note to Locust at the maturity date. November 28 Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8%, $30,000 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. 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year. Year End Accrual Required For: Fargo Bank Principal x Rate x Time = Interest Interest to be accrued in Year 1 % ☐
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
![!
Required information
[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 $37,000 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 $2,000 in cash.
July 8
?
Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note
payable.
Paid the amount due on the note to Locust at the maturity date.
November 28
Paid the amount due on the note to NBR Bank at the maturity date.
Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8%, $30,000 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.
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360
days a year.
Year End Accrual Required For:
Fargo Bank
Principal x
Rate
x
Time
=
Interest
Interest to be accrued in Year 1
%
☐](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda72de9e-aba5-49a0-96c1-5f536ef4cf93%2F70da1ea2-0f60-414a-bb94-6de4b2984212%2Fa80nibh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[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 $37,000 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 $2,000 in cash.
July 8
?
Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note
payable.
Paid the amount due on the note to Locust at the maturity date.
November 28
Paid the amount due on the note to NBR Bank at the maturity date.
Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8%, $30,000 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.
3. Determine the interest expense recorded in the adjusting entry at the end of Year 1.
Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360
days a year.
Year End Accrual Required For:
Fargo Bank
Principal x
Rate
x
Time
=
Interest
Interest to be accrued in Year 1
%
☐
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