Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. ___?___ Paid the amount due on the note to Locust at the maturity date. ___?___ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Prepare journal entries for all the preceding transactions

Tyrell Co.

Journal Entries:

April 20:

Debit Inventory $40,250

Credit Accounts Payable (Locust) $40,250

To record purchase of merchandise on credit, terms n/30.

May 19:

Debit Accounts Payable (Locust) $40,250

Credit 10% Notes Payable (Locust) $35,000

Credit Cash Account $5,250

To record the 90-day, 10% Notes Payable and payment of cash.

July 8:

Debit Cash Account $80,000

Credit 9% Notes Payable (NBR Bank) $80,000

To record the signing of a 120 day 9% bank note payable.

August 18:

Debit 10% Notes Payable (Locust) $35,000

Debit Interest Expense $875

Credit Cash Account $35,875

To record payment at maturity.

November 7:

Debit 9% Notes Payable (NBR Bank) $80,000

Debit Interest Expense $2,400

Credit Cash Account $82,400

To record payment at maturity.

Nov 28:

Debit Cash Account $42,000

Credit 8% Notes Payable (Fargo Bank) $42,000

To record the issue of 60-day, 8% note payable.

Dec. 31:

Debit Interest Expense $560

Credit Interest on Notes Payable $560

To accrue interest expense for one month.

Explanation:

Journal entries are used to initially record business transactions of Tyrell Co. as above.  They show the two or more accounts involved in each transaction.  The accounts that receive values are debited, while the others are credited.  This also balances the accounting equation based on each transaction.

answer; (identity theft);