can someone please help me with this assignment The January 1, 2016 trial balanc
ID: 2554355 • Letter: C
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can someone please help me with this assignment
The January 1, 2016 trial balance for the Tyrell Company is found on the trial balance tab. The beginning balances are assumed Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year.) 2016 Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms are n/30. Tyrell uses the perpetual inventory system with paying $5, 250 in cash $80, 000 May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 10% annual interest along July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9% interest-bearing note with a face value of Aug. 17 Paid the amount due on the note to Locust at the maturity date Nov. 5 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% interest-bearing note with a face value of $42,000 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank 2017 Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date Schedule of Payables Calculation of 2017 payment General Journal General Ledger Requirement Trial Balance Interest General Journal tab Prepare the 2016 journal entries related to the notes and accounts payable of Tyrell Co Calculation of interest tab - Use the interest formula (P x Rx T) to verify the amount of interest recorded in your entries Verify that total interest expense agrees with the trial balance 2017 payment tab Prepare the January 27, 2017 entry to record the repayment of the note at maturityExplanation / Answer
Date General Journal Debit Credit 2016 Apr. 20 Inventory 40250 Accounts payable 40250 (To record purchases on account) May. 19 Accounts payable 40250 Cash 5250 Notes payable 35000 (To record note issued) Jul. 8 Cash 80000 Notes payable 80000 (To record borrowing against note) Aug. 17 Notes payable 35000 Interest expense ($35000 x 10% x 90/360) 875 Cash 35875 (To record payment of note and interest) Nov. 5 Notes payable 80000 Interest expense ($80000 x 9% x 120/360) 2400 Cash 82400 (To record payment of note and interest) Nov. 28 Cash 42000 Notes payable 42000 (To record borrowing against note) Dec. 31 Interest expense ($42000 x 8% x 33/360) 308 Interest payable 308 (To record accrued interest) 2017 Jan. 27 Notes payable 42000 Interest payable 308 Interest expense ($42000 x 8% x 27/360) 252 Cash 42560 (To record payment of note and interest)
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