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x Wicsteam ng PlatformlLXY Secure newconnect.mheducation.com/flow/connect.html Gate & X McGraw-Hill Education CxySM final 6 Saved Help Save &Exit; Submit The January 1,2016 trial balance for the Nguyen Company is found on the trial balance tab The beginning balances are assumed Hall Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. (Use 360 days a year) 2016 Apr. 29 Purchased $54,7se of merchandise on credit from Lee, terms are n/30. Hall uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Lee with a 90-day, $36,000 note bearing les annual ?nterest along with paying $18,750 in cash. July 8 Borrowed $96,000 cash from CDR Bank by signing a 120-day, 6x interest-bearing note with a face value of $96,eee. Aug. 17 Paid the amount due on the note to Lee at the maturity date Nov. 5 Paid the amount due on the note to COR Bank at the maturity date Nov. 28 Borrowed $51,0ee cash from Austin Bank by signing a 60-day, 12% interest-bearing note with face value of $51,009. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank Jan. 27 Paid the amount due on the note to Austin Bank at the maturity date. 017 7 pa ReaurementJouLeentera o 2017 payment General Journal Trial Balance Ledger Payables Interest General Journal tab-Prepare the 2016 journal entries related to the notes and accounts payable of Hall Co. Calculation of interest tab - Use the interest formula (P x R xT) 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 maturity General Journal > Mc t aw ?Prey 14 of 17EEì score answer > 10:17 AM /2018 ere to search

Explanation / Answer

HALL COMPANY JOURNAL ENTRIES FOR THE YEAR 2016 AND 2017 AMOUNT IN $ AMOUNT IN $ DATE PARTICULARS DEBIT CREDIT 20.04.2016 PURCHASES (MERCHANDISE INVENTORY) A/C                      DR 54750 TO ACCOUNTS PAYABLE (LEE )A/C 54750 (BEING MERCHANDISE PURCHASED ON CREDIT , TERM N/30 USED) 20.05.2016 ACCOUNTS PAYABLE (LEE )A/C DR 54750 TO NOTES PAYABLE A/C 36000 TO CASH A/C 18750 (BEING ACCOUNT PAYABLE REPLACED WITH NOTES BEARING 10% ANNUAL INTEREST) 08.07.2016 CASH A/C DR 96000 TO NOTES PAYABLE A/C 96000 (BEING BORROWED CASH FRM CDR BANK BY SIGNING A 120 DAY, 6% INTEREST BEARING NOTE) 17.08.2016 NOTES PAYABLE A/C DR 36000 INTEREST EXPENSE A/C DR 900 TO CASH 36900 (36000*10/100*90/360) (BEING AMOUNT DUE ON NOTE AND INTEREST PAID ON MATURITY DATE) 05.11.2016 NOTES PAYABLE A/C DR 96000 INTEREST EXPENSE A/C DR 1920 TO CASH A/C 97920 (96000*6/100*120/360) (BEING AMOUNT DUE ON NOTE AND INTEREST PAID ON MATURITY DATE TO CDR BANK) 28.11.2016 CASH A/C DR 51000 TO NOTES PAYABLE A/C 51000 (BEING BORROWED CASH FRM AUSTIN BANK BY SIGNING A 60 DAY, 12% INTEREST BEARING NOTE) 31.12.2016 INTEREST EXPENSE A/C DR 561 TO INTEREST PAYABLE A/C 561 (51000*12/100*33/360) (BEING INTEREST EXPENSE ACCRUED) LOAN TAKEN ON 28.11, INTEREST ACCRUED (FROM 28.11-31.12)= 33 DAYS 391881 391881 JOURNAL ENTRIES FOR THE YEAR 2017 AMOUNT IN $ AMOUNT IN $ DATE PARTICULARS DEBIT CREDIT 27.01.2017 NOTES PAYABLE A/C DR 51000 INTEREST PAYABLE A/C DR 561 INTEREST EXPENSE A/C DR 459 TO CASH 52020 (BEING AMOUNT PAID TO AUSTIN BANK ALONG WITH INTEREST) (51000*12/100*27/360) INTEREST PAID FOR 27 DAYS OF JANUARY 2017 52020 52020

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