FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tyrell Co. entered into the following transactions involving short-term liabilities.
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Purchased $35,000 of merchandise on credit from Locust, terms n/30.
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Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $0 in cash.
- Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $66,000 note payable.
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Paid the amount due on the note to Locust at the maturity date.
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Paid the amount due on the note to NBR Bank at the maturity date.
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Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 8%, $36,000 note payable.
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Recorded an
adjusting entry for accrued interest on the note to Fargo Bank. -
Paid the amount due on the note to Fargo Bank at the maturity date.
Prepare
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