Exercise $4-1$

During $2011$ and $2012,$ Data Resources, Inc. engaged in financial transactions that involved short$-$term liabilities.

$1.$ Using the financial transaction information provided below, determine the following. Record your responses on page $2.$

a$.$ All three note maturity dates.

b$.$ The interest due on all three notes on the dates they mature, assuming a $360-$day year.

c$.$ The interest expense for the $2011$ year$-$end adjusting entry.

d$.$ For distinguished performance, determine the interest expense for $2012.$

Note: The company uses a perpetual inventory system.

$2011$

Mar $19$ Purchased $$41,250$ worth of merchandise from Chipcom, on credit. Terms: $1/10,$ n$/30.$

April $29$ Replaced the Mar $19$ account payable to Chipcom with a $120-$day, $$35,000$ note at $7\%$ annual interest, plus a cash payment of $$6,250.$

Jun $16$ Borrowed $$55,000$ cash from Sunnyvale Bank. Signed a $90-$day, $8\%$ interest$-$bearing note, with a $$55,000$ face value.

$?$ Paid Chipcom the amount due on the note on the date of maturity.

$?$ Paid Sunnyvale Bank the amount due on the note on the date of maturity.

Oct $30$ Borrowed $$18,000$ cash from UCB Bank. Signed a $90-$day, $7\%$ interest$-$bearing note, with a $$18,000$ face value.

Dec $31$ Recorded an accrued interest adjustment on the UCB Bank note.

$2012$

$?$ Paid UCB Bank the amount due on the note on the date of maturity.