Question: Need help fixing my problem Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $40, 250 of merchandise on
Need help fixing my problem




Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $40, 250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,800 note payable. Dec. 31 Recorded an adjusting entry- for accrued interest on the note to Fargo Bank. Year 2 _?_ Paid the amount due on the note to Fargo Bank at the maturity date. 5. Prepare journal entries for all the preceding transactions and events. Answer is not complete. No Date General Journal Debit Credit 1 Apr 20 40,250 Merchandise inventory Accounts payable Locust 40,250 2 May 19 40,250 Accounts payable_Locust Cash Notes payable Locust 5,250 35,000 3 Jul 08 Cash 80,000 80,000 Notes payable NBR Bank Aug 17 35,000 Notes payable_Locust Interest expense 35,875 X Nov 05 Notes payable NBR Bank 80,000 Interest expense 2,400 Cash 82,400 6 Nov 28 Cash o Notes payable Fargo Bank 42,000 42,000 7 Dec 31 Interest expense Interest payable 308 HI 308 8 Jan 27 Notes payable Fargo Bank 42,000 6 Nov 28 Cash Notes payable Fargo Bank 42,000 $ 42,000 7 Dec 31 Interest expense Interest payable 308 308 8 Jan 27 42,000 Notes payable-Fargo Bank Interest expense Interest payable Cash 252 308 42,560
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
