Description of this paper

Problem 9-1A Short-term notes payable transactions...

Description

Solution


Question

Problem 9-1A Short-term notes payable transactions and entries L.O. P1 [The following information applies to the questions displayed below.] Montag Co. entered into the following transactions involving short-term liabilities in 2010 and 2011. 2010 Apr. 20 Purchased $49,250 of merchandise on credit from Locust, terms are 1/10, n/30. Montag uses the perpetual inventory system. May 22 Replaced the April 20 account payable to Locust with a 30-day, $36,000 note bearing 6% annual interest along with paying $13,250 in cash. July 12 Borrowed $85,000 cash from National Bank by signing a 60-day, 9.00% interest-bearing note with a face value of $85,000. __?__ 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. 30 Borrowed $46,000 cash from Fargo Bank by signing a 90-day, 8.50% interest-bearing note with a face value of $46,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2011 __?__ Paid the amount due on the note to Fargo Bank at the maturity date. Requirement 1: Determine the maturity date for each of the three notes described. (February of 2011 has 28 days.) Locust Natl. Bank Fargo Maturity date Determine the interest due at maturity for each of the three notes. (Assume a 360-day year. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Locust Natl. Bank Fargo Interest due at maturity $ $ $ Determine the interest expense to be recorded in the adjusting entry at the end of 2010. (Enter 0 if no interest is to be accrued. Assume a 360-day year. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Locust Natl. Bank Fargo Total Accrued interest expense $ $ $ $

 

Paper#8188 | Written in 18-Jul-2015

Price : $25
SiteLock