Tyrell Co. entered into the following transactions involving short-term liabilities.

Year 1

Apr. 20 Purchased $39,000 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $4,000 in cash.
July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 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 $33,000 cash from Fargo Bank by signing a 60-day, 9%, $33,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Year 2

__?__ Paid the amount due on the note to Fargo Bank at the maturity date.
4. Determine the interest expense recorded in Year 2. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)

Tyrell Co. entered into the following transactions involving short-term liabilities.

Year 1

Apr. 20 Purchased $39,000 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $4,000 in cash.
July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 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 $33,000 cash from Fargo Bank by signing a 60-day, 9%, $33,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Year 2

__?__ Paid the amount due on the note to Fargo Bank at the maturity date.
5. Prepare journal entries for all the preceding transactions and events. (Do not round your intermediate calculations.)

1. Purchased $39,000 of merchandise on credit from Locust, terms n/30.
POSSIBLE INSERTS CAN BE:
Accounts payable—Locust
Accrued payroll payable
Bonus payable
Cash
Cost of goods sold
Deferred income tax liability
Earned services revenue
Earned ticket revenue
Employee benefits plan payable
Employee bonus expense
Employee fed. inc. taxes payable
Employee life insurance payable
Employee medical insurance payable
Employee union dues payable
Estimated warranty liability
Federal unemployment taxes payable
FICA—Medicare taxes payable
FICA—Social sec. taxes payable
Income taxes expense
Income taxes payable
Interest expense
Interest payable
Merchandise inventory
Notes payable—Fargo Bank
Notes payable—Locust
Notes payable—NBR Bank
Payroll taxes expense
Repair parts inventory
Salaries expense
Salaries payable
Sales
Sales salaries expense
Sales taxes payable
State unemployment taxes payable
Unearned services revenue
Unearned ticket revenue
Vacation benefits expense
Vacation benefits payable
Wages expense
Warranty expense
2. May: 19- Replaced the April 20 account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $4,000 in cash.
3.Jul 8- Borrowed $54,000 cash from NBR Bank by signing a 120-day, 12%, $54,000 note payable.
4. Paid the amount due on the note to Locust at the maturity date.
5.Paid the amount due on the note to NBR Bank at the maturity date.
6.Borrowed $33,000 cash from Fargo Bank by signing a 60-day, 9%, $33,000 note payable.
7.Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
8.Paid the amount due on the note to Fargo Bank at the maturity date.