GL901 - Based on Problem 9-1A LO C2, P1

The January 1, Year 1 trial balance for the Collins Company is found on the trial balance tab. The beginning balances are assumed. Parker Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.)

Year 1
Apr.		20		Purchased $52,250 of merchandise on credit from Lewis, terms n/30.
May		19		Replaced the April 20 account payable to Lewis with a 90-day, 12%, $39,000 note payable along with paying $13,250 in cash.
July		8		Borrowed $117,000 cash from NYR Bank by signing a 120-day, 9%, $117,000 note payable.
Aug.		17		Paid the amount due on the note to Lewis at the maturity date.
Nov.		5		Paid the amount due on the note to NYR Bank at the maturity date.
Nov.		28		Borrowed $75,000 cash from Fargo Bank by signing a 60-day, 8%, $75,000 note payable.
Dec.		31		Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
Jan.		27		Paid the amount due on the note to Fargo Bank at the maturity date.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Schedule of Payables
• Calculation of Interest
• Year 2 payment

General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Parker Co. Calculation of interest tab - Use the interest formula (P x R x T) 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.