Tyrell Co. entered into the following transactions involving short-term liabilit
ID: 2500495 • Letter: T
Question
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.
Determine the interest expense to be recorded in 2013. (Do not round your intermediate calculations. Use 360 days a year.)
Year end accrual required for: (Locust, National Bank OR Fargo Bank) <--- Choose one
Problem 9-1A Part 4 4. Determine the interest expense to be recorded in 2013. (Do not round your intermediate calculations. Use 360 days a year.) Year end accrual required for: Principal Ratem Principal x Rate x Time- Interest Total through maturity Interest to be accrued in 2012 Interest to be recorded in 2013Explanation / Answer
solution :
Principal Rate Time Interest Interest through maturity 30000 8% 60 400 interest to be accrued in 2012 30000 8% 33 220 Interest to be recoreded in 2013 30000 8% 27 180Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.