Question: Problem 9-1A Short-term notes payable transactions and entries LO P1 [The following information applies to the questions displayed below.] Tyrell Co. entered into the following
Problem 9-1A Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. |
| 2012 | |
| Apr. 20 | Purchased $35,000 of merchandise on credit from Locust, terms are 1/10, n/30. Tyrell uses the perpetual inventory system. |
| May 19 | Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $0 in cash. |
| July 8 | Borrowed $63,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $63,000. |
| __?__ | Paid the amount due on the note to Locust at the maturity date. |
| __?__ | Paid the amount due on the note to National Bank at the maturity date. |
| Nov. 28 | Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $30,000. |
| Dec. 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. |
| 2013 |
| __?__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
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