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ID: 2582095 • Letter: R
Question
Required information
[The following information applies to the questions displayed below.]
Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017.
2016
2017
5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.)
Journal entry worksheet
Transaction Index :
Purchased $39,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system.
Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $4,500 in cash.
Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% 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 NBR Bank at the maturity date.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
Note: Enter debits before credits.
Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% 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 NBR Bank at the maturity date.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
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.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
Paid the amount due on the note to NBR Bank at the maturity date.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Note: Enter debits before credits.
Apr. 20 Purchased $39,500 of merchandise on credit from Locust, terms 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 $4,500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 11% 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 NBR Bank at the maturity date. Nov. 28 Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $36,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.Explanation / Answer
JOURNAL ENTRIES FOR THE YEAR 2016 DATE PARTICULARS REF NO DEBIT CREDIT 20/04/2016 PURCHASES A/C DR 39500 TO MERCHANDISE A/C 39500 19/05/2016 MERCHANDISE A/C DR 39500 TO CASH 4500 TO LOCUST 7% BOND 90 DAYS 35000 08/07/2016 CASH A/C DR 63000 TO NBR BANK LOAN 11% 120 DAYS 63000 17/08/2016 LOCUST 7% BOND A/C DR 35000 INTEREST ON BOND A/C DR - 35000*7%*90/365 604 TO CASH A/C 35604 05/11/2016 NBR BANK LOAN 11% A/C DR 63000 INTEREST ON BOND A/C DR - 63000*11%*120/365 2278 TO CASH A/C 65278 28/11/2016 CASH 36000 TO LOAN FROM FARGO BANK A/C 36000 31/12/2016 INTEREST A/C DR 235 TO INTEREST ACCURED A/C -36000*7%*34/365 235 31/12/2016 INCOME STATEMENT OR P&L A/C DR 3117 TO INTEREST ON LOCUST BOND 604 TO INTEREST ON NBR BANK LOAN 2278 TO INTEREST ACCURED TO FARGO BANK 235 26/01/2017 INTEREST ON LOAN A/C DR 36000*7%*26/365 179 INTEREST ACCURED A/C DR 235 TO CASH A/C 414
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