Parker Company entered into the following transactions involving short-term liabilities.
Note: Use 360 days a year.
Year 1
April 20 Purchased $44,750 of merchandise on credit from Carter, terms n/30.
May 19 Replaced the April 20 account payable to Carter with a 90-day, 8%, $36,000 note payable along with paying
$8,750 in cash.
July 8 Borrowed $108,000 cash from MTR Bank by signing a 120-day, 9%, $108,000 note payable.
August 17 Paid the amount due on the note to Carter at the maturity date.
November 5 Paid the amount due on the note to MTR Bank at the maturity date.
November 28 Borrowed $69,000 cash from Albany Bank by signing a 60-day, 8%, $69,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank.
Year 2
January 27 Paid the amount due on the note to Albany Bank at the maturity date.
Requirement
General
General
Trial Balance
Journal
Ledger
Schedule of Calculation of
Payables
Interest
Year 2
payment
Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the
accuracy of your entries.