Help Save& Exit mework Check my Required information The folowing information ap

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Help Save& Exit mework Check my Required information The folowing information applies to the questions displayed below Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017 2016 Apr· 20 Purchased S37,000 merchandise of merchandise on eredit from Locust, terms n/30. Tyrell uses the perpetual inventory system interest along with paying $2,000 in cash value of $57,000 the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8t annual 557,000 cash from NBR Bank by July Borrowed signing a 120-day, 108 interest-bearing note with a face , Paid the amount due on the note to Loeast at the naturity date. -7-Paid the amount due on the note to NBR Bank . at the naturity date Nov. 28 Borroved 330,000 cash from Fargo nank by signing a 60-day, 7 interest Dec. 31 Recorded an adjusting entry for acerued interest on the note to Fargo Bank. value of $30,000. 2017 -?- Paid the amount due on the note to Pargo Bank at the naturity date. 5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations. View transaction list Journal entry worksheet

Explanation / Answer

Prepare the journal entries as follows:

Date Account Titles and Explanation Debit Credit Apr. 20 Accounts Payable 37000       Merchandise Inventory 37000 May. 19 Accounts Payable 37000       Notes Payable 35000       Cash 2000 Jul. 8 Cash 57000       Notes Payable 57000 Aug. 17 Interest Expense (35,000 x 8% x 90/365) 690 Notes Payable 35000       Cash 35690 Nov. 5 Interest Expense (57,000 x 10% x 120/365) 1874 Notes Payable 57000       Cash 58874 Nov. 28 Cash 30000       Notes Payable 30000 Dec. 31 Interest Expense 190       Interest Payable 190

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