Required information 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. Year 1 Apr. 20 Purchased $37,000 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 $2,000 in cash. July 8 Borrowed $60,000 cash from NBR Bank by signing a 120-day, 12%, $60,000 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 $30,000 cash from Fargo Bank by signing a 60-day, 9%, $30,000 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. Problem 9-1A Part 3 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. (Do not round your intermediate calculations. Use 360 days a year.) Year End Accrual Required For: Fargo Bank Principal x Rate x Time = Interest Interest to be accrued in Year 1 x % x = Problem 9-1A Part 4 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 required for: Fargo Bank Principal x Rate x Time Interest to be recorded in Year 2 X % x = Interest 5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.) View transaction list View journal entry worksheet No Date General Journal 1 Apr 20 Merchandise inventory Accounts payable-Locust 2 May 19 Accounts payable-Locust Cash Notes payable-Locust Debit Credit 37,000 ....... 37,000 37,000 2,000 35,000 3 Jul 08 Cash 60,000 Notes payable-NBR Bank 60,000 4 Aug 17 Notes payable-Locust Interest expense Cash