I need help in this exercise plz.The book is financial and managerial accounting

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I need help in this exercise plz.The book is financial and managerial accounting wild, 6e
Chapter 9 problem 9-1A

Problem 9-1A Short-term notes payable transactions and entries LO P1 IThe following information applies to the questions displiayed below] Tyrell Co. entered into the following transactions involving short-term liablities in 2014 and 2015. 2014 Apr. 20 Purchased $39,000 of merchandise on credit from Locust, terms are 110, v30. Tyrel uses the May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 9% annual July 8 Borrowed $57,000 cash from National Bank by signing a 120-day, 11% interest-bearing note with a perpetual inventory system. interest along with paying $4,000 in cash. face value of $57,000 ?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 Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank Paid the amount due on the note to Fargo Bank at the maturity date Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $24,000 2015 References

Explanation / Answer

(1).

Locust

Natl. Bank

Fargo

Maturity date

August 16, 2014

November 5, 2014

January 26, 2015

(2). Interest due at maturity;

Locust

Natl. Bank

Fargo

Interest due at maturity

$787.50

$2090

$320

Working note;

Interest due at maturity for Locust;

($35000 * 0.09 * 90 / 360) = $787.50

Interest due at maturity for National bank;

($57000 * 0.11 * 120 / 360) = $2090

Interest due at maturity for Fargo;

($24000 * 0.08 * 60 / 360) = $320

(3). Interest to be accrued in 2014;

Locust

Natl. Bank

Fargo

Interest to be accrued in 2014

$787.50

$2090

$181.33

Working note;

Interest to be accrued in 2014 for Locust;

($35000 * 0.09 * 90 / 360) = $787.50

Interest to be accrued in 2014 for National bank;

($57000 * 0.11 * 120 / 360) = $2090

Interest to be accrued in 2014 for Fargo;

($24000 * 0.08 * 34 / 360) = $181.33

(4). Interest to be recorded in 2015;

Locust

Natl. Bank

Fargo

Interest to be recorded in 2015

Nil

Nil

$138.67

Working note;

Interest to be recorded in 2015 for Fargo;

($24000 * 0.08 * 26 / 360) = $138.67

(5.1).

Date

General Journal

Debit

Credit

Apr. 20, 2014

Merchandise inventory

$39000

     Accounts payable

$39000

(For recording purchase of merchandise inventory)

May 19, 2014

Accounts payable

$39000

     Notes payable

$35000

     Cash

$4000

(For recording payment in cash and notes payable)

July 8, 2014

Cash

$57000

     Notes payable

$57000

(for recording borrowings from national bank)

Aug. 16, 2014

Notes payable

$35000

Interest expense

$787.50

     Cash

$35787.50

(for recording payment of notes payable to Locust)

Nov. 5, 2014

Notes payable

$57000

Interest expense

$2090

     Cash

$59090

(for recording payment of notes payable to National bank)

Nov 28, 2014

Cash

$24000

     Notes payable

$24000

(for recording borrowings from Fargo bank)

Dec. 31, 2014

Interest expense

$181.33

     Accrued interest

$181.33

(Adjusting entry for recording accrued interest)

(5.2).

Date

General Journal

Debit

Credit

Jan. 26, 2015

Notes payable

$24000

Interest expense

$138.67

Accrued interest

$181.33

     Cash

$24320

(for recording payment of notes payable to fargo bank)

Locust

Natl. Bank

Fargo

Maturity date

August 16, 2014

November 5, 2014

January 26, 2015

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