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question tytus co entered into the following transactions involvingshort term liabil 4282402

Question

Tytus Co. entered into the following transactions involvingshort-term liabilities in 2012 and 2013

2012

Apr. 20 Purchased $40,250 of merchandise on credit from Locust,terms are 1/10, n/30. Tytus uses the perpetual inventorysystem.

May 19 Replaced the April 20 account payable to Locust with a90-day, $35,000 note bearing 10% annual interest along with paying$5,250 in cash.

July 8 Borrowed $80,000 cash from National Bank by signing a120-day, 9% interest-bearing note with a face value of $80,000.

__?__ Paid the amount due on the note to Frier at the maturitydate.

__?__ Paid the amount due on the note to Community Bank at thematurity date.

Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day,8% interest-bearing note with a face value of $42,000.

Dec. 31 Recorded an adjusting entry for accrued interest on thenote to Fargo Bank.

2013

__?__ Paid the amount due on the note to Fargo Bank at the maturitydate.

1. Determine the maturity date for each of the three notesdescribed.

2. Determine the interest due at maturity for each of the threenotes.( Assume a 360-day year)

3. Determine the interest expense to be recorded in theadjusting entry at the end of 2012.

4. Determine the interest expense to be recorded in 2013.

5. Prepare journal entries for all the preceding transactionsand events for years 2012 and 2013.

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