Problem 9-1A Short-term notes payable transactions and entries LO P1 [The follow
ID: 2500244 • Letter: P
Question
Problem 9-1A Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Purchased $35,000 of merchandise on credit from Locust, terms are 1/10, n/30. Tyrell uses the perpetual inventory system.
Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $0 in cash.
Borrowed $63,000 cash from National Bank by signing a 120-day, 12% interest-bearing note with a face value of $63,000.
Borrowed $30,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $30,000.
Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013.
Explanation / Answer
Problem 9-1A Short-term notes payable transactions and entries LO P1 [The follow