april 20 purchased $53,250 of merchandise on credit from wilson, terms n/30. may 19 replaced the april 20…

april 20 purchased $53,250 of merchandise on credit from wilson, terms n/30. may 19 replaced the april 20 account payable to wilson with a 90 - day, 6%, $37,000 note payable along with paying $16,250 in cash. july 8 borrowed $87,000 cash from nmr bank by signing a 120 - day, 6%, $87,000 note payable. august 17 paid the amount due on the note to wilson at the maturity date. november 5 paid the amount due on the note to nmr bank at the maturity date. november 28 borrowed $81,000 cash from rochester bank by signing a 60 - day, 12%, $81,000 note payable. december 31 recorded an adjusting entry for accrued interest on the note to rochester bank. year 2 january 27 paid the amount due on the note to rochester bank at the maturity date. requirement enter the principal amount, interest rate, and number of days of interest to be recorded for expense agrees with your journal entries and the trial balance. king company calculation of interest expense august 17 - wilson note: principal $37,000 interest rate 6.0% number of days interest to be recorded in year 1 90 interest = principal × rate × days/360 = $555 november 5 - nmr bank note: principal interest rate number of days interest to be recorded in year 1 interest = principal × rate × days/360 =

april 20 purchased $53,250 of merchandise on credit from wilson, terms n/30. may 19 replaced the april 20 account payable to wilson with a 90 - day, 6%, $37,000 note payable along with paying $16,250 in cash. july 8 borrowed $87,000 cash from nmr bank by signing a 120 - day, 6%, $87,000 note payable. august 17 paid the amount due on the note to wilson at the maturity date. november 5 paid the amount due on the note to nmr bank at the maturity date. november 28 borrowed $81,000 cash from rochester bank by signing a 60 - day, 12%, $81,000 note payable. december 31 recorded an adjusting entry for accrued interest on the note to rochester bank. year 2 january 27 paid the amount due on the note to rochester bank at the maturity date. requirement enter the principal amount, interest rate, and number of days of interest to be recorded for expense agrees with your journal entries and the trial balance. king company calculation of interest expense august 17 - wilson note: principal $37,000 interest rate 6.0% number of days interest to be recorded in year 1 90 interest = principal × rate × days/360 = $555 november 5 - nmr bank note: principal interest rate number of days interest to be recorded in year 1 interest = principal × rate × days/360 =

Answer

Explanation:

Step1: Identify principal, rate and days for NMR Bank note

The principal of the NMR Bank note on July 8 is $87,000, the interest rate is 6%, and the note is 120 - day. It matures on November 5. From July 8 to November 5 in Year 1, the number of days is 120 days.

Step2: Calculate interest for NMR Bank note

Using the formula $Interest = Principal\times rate\times\frac{days}{360}$, we substitute $Principal = 87000$, $rate=0.06$ and $days = 120$. So, $Interest=87000\times0.06\times\frac{120}{360}$ $Interest = 1740$

Answer:

November 5 - NMR Bank note:
Principal $87,000
Interest rate 6.0%
Number of days' interest to be recorded in Year 1 120
Interest = Principal × rate × days/360 = $1740