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

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

Year 1
Apr.		20		Purchased $49,750 of merchandise on credit from Nguyen, terms n/30.
May		19		Replaced the April 20 account payable to Nguyen with a 90-day, 8%, $38,000 note payable along with paying $11,750 in cash.
July		8		Borrowed $102,000 cash from NMR Bank by signing a 120-day, 10%, $102,000 note payable.
Aug.		17		Paid the amount due on the note to Nguyen at the maturity date.
Nov.		5		Paid the amount due on the note to NMR Bank at the maturity date.
Nov.		28		Borrowed $60,000 cash from Chicago Bank by signing a 60-day, 6%, $60,000 note payable.
Dec.		31		Recorded an adjusting entry for accrued interest on the note to Chicago Bank.
Year 2
Jan.		27		Paid the amount due on the note to Chicago Bank at the maturity date.

www.uy....wwwwwwwwwwwIVI..vwwww.................... The January 1, Year 1 trial balance for the Carter Company is found on the trial balance tab. The beginning balances are assumed. Gonzalez Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year Apr. May July Aug. 20 Purchased $49,750 of merchandise on credit from Nguyen, terms n/30. 19 Replaced the April 20 account payable to Nguyen with a 90-day, 8%, $38,000 note payable along with paying $11,750 in cash. 8 Borrowed $102,000 cash from NMR Bank by signing a 120-day, 10%, $102,000 note payable. 17 Paid the amount due on the note to Nguyen at the maturity date. 5 Paid the amount due on the note to NMR Bank at the maturity date. 28 Borrowed $60,000 cash from Chicago Bank by signing a 60-day, 6%, $60,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank. Nov. Nov. Dec. Year : 2 Jan. 27 Paid the amount due on the note to Chicago Bank at the maturity date. Answer is not complete. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. No Credit Date Apr 20 Account Title Merchandise inventory Accounts payable - Nguyen Debit 49,750 49,750 May 19 49,750 Accounts payable - Nguyen Notes payable - Nguyen Cash 38,000 11,750 Jul 08 102,000 Cash Notes payable - NMR Bank 102,000 Aug 17 Notes payable - Nguyen Interest expense Cash 38,000 760 38,760 Nov 05 Notes payable - NMR Bank Interest expense Cash 102,000 3,400 105,400 Nov 28 60,000 Cash Notes payable - Chicago 60,000 Dec 31 Interest expense Interest payable - 330 330 Joll. 21 Poru Lie IUUIL Uue UI Lie lule LU LILILagu Dark ALLiela LUI ILYUule. Answer is not complete. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment General Ledger Account Cash Debit Merchandise inventory Debit Credit No. Credit No. Date Jan 01 Apr 20 Balance 7,500 57,250 11,750 49,750 2 3 Date Jan 01 May 19 Jul 08 Aug 17 Nov 05 Nov 28 102,000 Balance 48,000 36,250 138,250 99.490 (5,910) 54,090 38,760 105,400 - - 5 6 60,000 Interest payable Debit Credit No. Balance No. Balance Accounts payable - Nguyen Date Debit Credit Jan 01 Apr 20 49,750 May 19 49,750 Date Jan 01 Dec 31 49,750 330 330 2 Notes payable - Chicago Debit Credit Notes payable - Nguyen Debit Credit No. Balance No. Balance Date Jan 01 Nov 28 Date Jan 01 May 19 Aug 17 - 6 60,000 60,000 38,000 38,000 2 4 - 3 8,000 Notes payable - NMR Bank Credit Carter, Capital Debit Credit No. Balance No. Date Jan 01 Balance 55,500 Date Jan 01 Jul 08 Nov 05 102,000 3 5 102,000 * 102,000 Interest expense Debit Credit No. Balance Date Jan 01 Aug 17 Nov 05 Dec 31 - - 5 7 760 3,400 330 760 4,160 4,490 Answer is not complete. 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. Carter Company Trial Balance December 31, 2018 Account Title Credit $ Debit 54,090 57,250 Cash Merchandise inventory Interest payable Notes payable - Chicago Carter, Capital Interest expense Total 330 60,000 55,500 4,490 115,830 $ 115,830 General Ledger Schedule of Payables > Del. 51 Kelurueu all du jusling ellery TUI dllrueu Interest UHLE HULE LU CHIldgu balik. Year Jan. 27 Paid the amount due on the note to Chicago Bank at the maturity date. Answer is not complete. 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: Gonzalez Co. Schedule of Accounts Payable Total accounts payable Gonzalez Co. Schedule of Notes Payable Notes payable - Chicago 60,000 Total notes payable 60,000 Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment 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. Gonzalez Co. Calculation of interest expense August 17 - Nguyen note: Principal Interest rate Number of days' interest to be recorded in Year 1 600 Total interest expense - Year 1