Tyrell Co. entered into the following transactions involving short-term liabilities in 2014 and 2015

Tyrell Co. entered into the following transactions involving short-term liabilities in 2014 and 2015.

   

2014
Apr. 20	Purchased $39,500 of merchandise on credit from Locust, terms are 1/10, n/30. Tyrell uses the perpetual inventory system.
May 19	Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 9% annual interest along with paying $4,500 in cash.
July 8	Borrowed $63,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $63,000.
__?__	Paid the amount due on the note to Locust at the maturity date.
__?__	Paid the amount due on the note to National Bank at the maturity date.
Nov. 28	Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $24,000.
Dec. 31	Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

   

2015

__?__

Paid the amount due on the note to Fargo Bank at the maturity date.

Required:
1.	Determine the maturity date for each of the three notes described.

                                Locust              Natl. Bank               Fargo

Maturity date          Aug. 17              Nov. 5                   Jan. 27

Explanation:

Maturity dates

	Locust	Natl. Bank	Fargo
Date of the note	May 19	July 8	Nov. 28
Term of the note (in days)	90	120	60
Maturity date	Aug. 17	Nov. 5	Jan. 27

2.	Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.)

 

Explanation:

Interest due at maturity

	Locust			Natl. Bank			Fargo
Principal of the note	$	35,000		$	63,000		$	24,000
Annual interest rate		9	%		12	%		7	%
Fraction of year		90/360			120/360			60/360
Interest expense	$	788		$	2,520		$	280

3.	Determine the interest expense to be recorded in the adjusting entry at the end of 2014. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar. Use 360 days a year.)

Explanation:

Accrued interest on Fargo note at the end of 2014

Total interest for note	$	280
Fraction of term in 2014		33/60
Accrued interest expense	$	154

4.	Determine the interest expense to be recorded in 2015. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)

Explanation:

Interest on Fargo note in 2015

Total interest for note	$	280
Fraction of term in 2015		27/60
Interest expense in 2015	$	126

5.1	Prepare journal entries for all the preceding transactions and events for years 2014. (Do not round your intermediate calculations.)

5.2	Prepare journal entries for all the preceding transactions and events for years 2015. (Do not round your intermediate calculations.)