year 1\napril 20 purchased $53,250 of merchandise on credit from wilson, terms n/30.\nmay 19 replaced the…

year 1\napril 20 purchased $53,250 of merchandise on credit from wilson, terms n/30.\nmay 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.\njuly 8 borrowed $87,000 cash from nmr bank by signing a 120 - day, 6%, $87,000 note payable.\naugust 17 paid the amount due on the note to wilson at the maturity date.\nnovember 5 paid the amount due on the note to nmr bank at the maturity date.\nnovember 28 borrowed $81,000 cash from rochester bank by signing a 60 - day, 12%, $81,000 note payable.\ndecember 31 recorded an adjusting entry for accrued interest on the note to rochester bank.\nyear 2\njanuary 27 paid the amount due on the note to rochester bank at the maturity date.\nrequirement general journal general ledger trial balance schedule of payables calculation of interest year 2 payment\nenter the principal amount, interest rate, and number of days of interest to be recorded for each note. verify that interest expense agrees with your journal entries and the trial balance.\nking company\ncalculation of interest expense\naugust 17 - wilson note:\nprincipal\ninterest rate\nnumber of days interest to be recorded in year 1

year 1\napril 20 purchased $53,250 of merchandise on credit from wilson, terms n/30.\nmay 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.\njuly 8 borrowed $87,000 cash from nmr bank by signing a 120 - day, 6%, $87,000 note payable.\naugust 17 paid the amount due on the note to wilson at the maturity date.\nnovember 5 paid the amount due on the note to nmr bank at the maturity date.\nnovember 28 borrowed $81,000 cash from rochester bank by signing a 60 - day, 12%, $81,000 note payable.\ndecember 31 recorded an adjusting entry for accrued interest on the note to rochester bank.\nyear 2\njanuary 27 paid the amount due on the note to rochester bank at the maturity date.\nrequirement general journal general ledger trial balance schedule of payables calculation of interest year 2 payment\nenter the principal amount, interest rate, and number of days of interest to be recorded for each note. verify that interest expense agrees with your journal entries and the trial balance.\nking company\ncalculation of interest expense\naugust 17 - wilson note:\nprincipal\ninterest rate\nnumber of days interest to be recorded in year 1

Answer

Explanation:

Step1: Identify Wilson note details

Principal = $37,000, Interest rate = 6%, Note - term = 90 days, Date issued = May 19, Year - end = December 31.

Step2: Calculate number of days from issue to Year - end

May has 31 days, so from May 19 to May 31 is 31 - 19=12 days. June has 30 days, July has 31 days, August has 17 days (up to the maturity date). Total days from May 19 to August 17 is 12 + 30+31 + 17=90 days. Since the note matures on August 17 in Year 1, the number of days' interest to be recorded in Year 1 is 90 days.

Answer:

Principal: $37,000 Interest rate: 6% Number of days' interest to be recorded in Year 1: 90