Required information The following information applies to the questions displaye

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 Apr. 20 Purchased $35,e00 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. may 19 Replaced the April 28 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $e in cash. July 8 Borrowed,57,000 cash from NBR Bank by signing a 120-day, 12% interest-bearing note with a 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 NBR Bank at the maturity date No. 28 Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 $30,000 ?-paid the amount due on the note to Fargo Bank at the maturity date 5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.)

Explanation / Answer

Journal entries Date Accounting titles & Explanations Debit Credit 20-Apr inventory 35,000 Accounts payable 35,000 19-May Accounts payable 35,000 notes payable 35,000 8-Jul Cash 57,000 notes payable 57,000 17-Aug notes payable 35,000 interest expense 613 cash 35,613 5-Nov notes payable 57,000 interest expense 2,280 cash 59,280 28-Nov Cash 30,000 notes payable 30,000 31-Dec interest expense 220 interest payable 220 2017 27-Jan notes payable 30,000 interest payable 220 interest expense 180 cash 30,400

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