GL901 (Algo) - Based on Problem 09-1A LO P1

The January 1, Year 1 trial balance for the Gonzalez Company is found on the trial balance tab. The beginning balances are assumed.

Wright Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.)

Year 1

April 20 Purchased $42,250 of merchandise on credit from Hall, terms n/30.

May 19 Replaced the April 20 account payable to Hall with a 90-day, 8%, $39,000 note payable along with paying $3,250 in cash.

July 8 Borrowed $93,000 cash from NJR Bank by signing a 120-day, 12%, $93,000 note payable.

August 17 Paid the amount due on the note to Hall at the maturity date.

November 5 Paid the amount due on the note to NJR Bank at the maturity date.

November 28 Borrowed $54,000 cash from Sacramento Bank by signing a 60-day, 12%, $54,000 note payable.

December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank.

Year 2

January 27 Paid the amount due on the note to Sacramento Bank at the maturity date.

GL901 (Algo) - Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Gonzalez Company is found on the trial balance tab. The beginning balances are assumed. Wright Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,250 of merchandise on credit from Hall, terms n/30. May 19 Replaced the April 20 account payable to Hall with a 90-day, 89, $39,000 note payable along with paying $3,250 in cash. July 8 Borrowed $93,000 cash from NJR Bank by signing a 120-day, 123, $93, 000 note payable. August 17 Paid the amount due on the note to Hall at the maturity date. November 5 Paid the amount due on the note to NJR Bank at the maturity date. November 28 Borrowed $54,000 cash from Sacramento Bank by signing a 60-day, 128, $54,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. General General Schedule of Calculation of Year 2 Requirement Journal Trial Balance Ledger Payables Interest payment General Journal tab - Journalize the transactions related to the notes and accounts payable of Wright Co. The General Ledger, Trial Balance and Schedule of Payables will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Calculation of interest tab - Use the interest formula (P x RXT) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Year 2 payment tab - Prepare the January 27, Year 2 entry to record the repayment of the note at maturity. View transaction list Journal entry worksheet April 20. Purchased $42,250 of merchandise on credit from Hall, terms n/30. Note: Enter debits before credits. Date Account Title Debit Credit April 20 Recordanto Clearanto View.general lournal Prey 1 of 1 Next > Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment General Ledger Account Cash Merchandise Inventory No. Debit Credit No. Debit Credit Date January 01 Balance 56,000 Date January 01 Balance 7,000 Gonzalez, Capital Debit Credit No. Date Balance 63,000 January 01 Year January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment No input required. Year 2018 represents Year 1 from the problem statement. Gonzalez Company Trial Balance January 01, 2021 Account Title Debit Credit $ 56,000 7,000 Cash Merchandise inventory Gonzalez, Capital Total 63,000 63,000 $ 63,000 $ Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Here are the balances in Accounts and Notes payable based on your journal entries: Wright Company Schedule of Accounts Payable Total accounts payable $ 0 Wright Company Schedule of Notes Payable Total notes payable $ Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. Wright Company Calculation of interest expense August 17 - Hall note: Principal Interest rate Number of days interest to be recorded in Year 1 Total interest expense - Year 1 Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. General Requirement General Schedule of Year 2 Trial Balance Calculation of Journal Ledger Payables Interest payment Prepare the January 27, Year 2 journal entry to record the payment of the Sacramento note at maturity. Gonzalez Company does NOT prepare reversing entries. Account title Debit Credit Date 1/27/Year 2