Problem 11-1A Short-term notes payable transactions and entries L.O. P1
[The following information applies to the questions displayed below.]
Tytus Co. entered into the following transactions involving short-term liabilities in 2010 and 2011.
Apr. 20 Purchased $37,500 of merchandise on credit from Frier, terms are 1/10, n/30. Tytus uses the perpetual inventory system.
May 19 Replaced the April 20 account payable to Frier with a 90-day, $30,000 note bearing 7% annual interest along with paying $7,500 in cash.
July 8 Borrowed $66,000 cash from Community Bank by signing a 120-day, 12% interest-bearing note with a face value of $66,000.
__?__ Paid the amount due on the note to Frier at the maturity date.
__?__ Paid the amount due on the note to Community Bank at the maturity date.
Nov. 28 Borrowed $30,000 cash from UMB Bank by signing a 60-day, 8% interest-bearing note with a face value of $30,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to UMB Bank.
__?__ Paid the amount due on the note to UMB Bank at the maturity date.
1. Determine the maturity date for each of the three notes described.
2. Determine the interest due at maturity for each of the three notes. (Use 360 days a year. Do not round your intermediate calculations. Omit the "$" sign in your response.)
Determine the interest expense to be recorded in 2011. (Use 360 days a year. Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Recently Asked Questions
- what is the role of total IgE in development of Asthma. obesity increase total IgE in the body so will it increase the risk of developing asthma or just making
- The flexible strategy is a high-risk , high-return alternative to the restrictive strategy .
- When merchandise is acquired on account and the periodic system of inventory is used , the journal entry for the purchases would include