Question

please indicate which company on the aacount payable.... thank you in advance.

GL0901 - Based on Problem 9-1A Tyrell Company LO C2, P1 The January 1, 2017 trial balance for the Tyrell Company is found on the trial balance tab. The beginning balances are assumed. Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018. (Use 360 days a year.) 2017 Apr. 20 Purchased $47,750 of merchandise on credit from Locust, terms are n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to locust with a 90-day, $38,000 note bearing 6% annual interest along with paying $9,750 in cash. July 8 Borrowed $90,000 cash from NBR Bank by signing a 120-day, 9% interest-bearing note with a face value of $90,000. Aug. 17 Paid the amount due on the note to Locust at the maturity date. Nov. 5 Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $48,000 cash from Fargo Bank by signing a 60-day, 10% interest-bearing note with a face value of $48,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2018 Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date. Requirement General Journal General Trial Balance Ledger Schedule of Payables Calculation of Interest 2018 payment Prepare the January 27, 2018 journal entry to record the payment of the Fargo note at maturity. Tyrell Company does NOT prepare reversing entries. Date Account title Debit Credit

Answer 1

Tyrell Co
Req 1
Days	Note	Origin Date	Maturity Date
90 days	6% Note Payable-Locust	19-May-17	17-Aug-17
120 days	9% Note Payable- NBR	8-Jul-17	5-Nov-17
60 days	8% Note Payable- Fargo Bank	28-Nov-17	27-Jan-18

Req 2
August 2017 - Locust note
Principal	38,000
Interest Rate	6%
No. of days interest to be recorded in 2017	90/360
Interest expense		570	=38,000*6%*90/360
November 2017 - NBR bank note
Principal	90,000
Interest Rate	9%
No. of days interest to be recorded in 2017	120/360
Interest expense		2,700	=90,000*9%*120/360
Req 3
November 2017 - Fargo bank note
Principal	48,000
Interest Rate	8%
No. of days interest to be recorded in 2017	33/360		33 days from 28 Nov to 31st Dec
Interest accrued		352	=48,000*8%*33/360
Total Interest expense - 2017		3,622
Req 4
November 2017 - Fargo bank note
Principal	48,000
Interest Rate	8%
No. of days interest to be recorded in 2017	27/360		Out of 60 days, 33 days accrued, so rest 27 days
Interest expense		288	=48,000*8%*27/360

Req 5
Journal entries
Date	Account	Debit	Credit	Calculation
20-Apr-17	Inventory	47,750
	Accounts Payable - Locust		47,750
19-May-17	Accounts Payable	47,750
	6% Note Payable-Locust		38,000
	Cash		9,750
8-Jul-17	Cash	90,000
	9% Note Payable- NBR		90,000
17-Aug-17	6% Note Payable-Locust	38,000
	Interest expense	570		=38,000*6%*90/360
	Cash		38,570
5-Nov-17	9% Note Payable- NBR	90,000
	Interest expense	2,700		=90,000*9%*120/360
	Cash		92,700
28-Nov-17	Cash	48,000
	8% Note Payable- Fargo Bank		48,000
31-Dec-17	Interest expense	352		=48,000*8%*33/360
	Interest Payable		352
27-Jan-18	8% Note Payable- Fargo Bank	48,000
	Interest Payable	352
	Interest expense	288		=48,000*8%*27/360
	Cash		48,640