Please read through and answer the blank spaces that need to be filled in. Thank you! 9. (part 1 of 5) Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $38,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $3,500 in cash. July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 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. November 28 Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7%, $36,000 note payable. December 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. Required: 1. Determine the maturity date for each of the three notes described. Required: 1. Determine the maturity date for each of the three notes described.

	Locust	NBR Bank	Fargo Bank
Maturity Date	May 19, Year 1	July 8, Year 1	November 28, Year 1

10. (part 2 of 5) 2. Determine the interest due at maturity for each of the three notes. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.)

	Principal	x	Rate	x	Time	=	Interest
Locust	$35,000	x	8%	x	90/360	=	$700
NBR Bank	$54,000	x	10%	x	120/360	=	$1,800
Fargo Bank	$36,000	x	7%	x	60/360	=	420

11. (part 3 of 5) Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Use 360 days a year.)

Year End Accrual For:	Fargo Bank
	Principal x Rate x Time = Interest
Interest to be accrued in Year 1	$36,000 x 7% x 33/360 x = $231

12. (part 4 of 5) 4. Determine the interest expense recorded in Year 2. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)

Year End Accrual For:	Fargo Bank
	Principal x Rate x Time = Interest
Interest to be accrued in Year 2	$36,000 x 7% x 27/360 x = $189

13. (part 5 of 5) 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.)

1.

Date	General Journal	Debit	Credit
April 20	Merchandise Inventory	38,500
	Accounts payable--Locust		38,500

2. Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $3,500 in cash.

Date	General Journal	Debit	Credit
May 19	Accounts payable--locust	38,500
	Cash		3,500
	Notes Payable--Locust		35,000

3. Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10%, $54,000 note payable.

Date	General Journal	Debit	Credit
July 08	Cash	54,000
	Notes Payable--NBR Bank		54,000

4. Paid the amount due on the note to Locust at the maturity date.

Date	General Journal	Debit	Credit
August 18	Interest Expense	54,000
			54,000

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

Date	General Journal	Debit	Credit
November 05	Notes Payable--NBR Bank	54,000
	Interest Expense

6. Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7%, $36,000 note payable.

Date	General Journal	Debit	Credit
November 28	Cash	36,000
	Notes Payable--Fargo Bank		36,000

7. Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Date	General Journal	Debit	Credit
December 31	Interest Expense
	Interest Payable

8. Paid the amount due on the note to Fargo Bank at the maturity date.

Date	General Journal	Debit	Credit
January 27