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Tytus Co. entered into the following transactions involving short-term liabilities in 2010 and 2011. 2010 Apr. 20 Purchased $37,000 of merchandise...

Question:

Tytus Co. entered into the following transactions involving short-term liabilities in 2010 and 2011.

2010      

Apr. 20                  Purchased $37,000 of merchandise on credit from Frier, terms are 1/10, n/30. Tytus uses the perpetual inventory system.

May 19                 Replaced the April 20 account payable to Frier with a 90-day, $30,000 note bearing 7% annual interest along with paying $7,000 in cash.

July 8     Borrowed $57,000 cash from Community Bank by signing a 120-day, 12% interest-bearing note with a face value of $57,000.

__?__  Paid the amount due on the note to Frier at the maturity date.

__?__  Paid the amount due on the note to Community Bank at the maturity date.

Nov. 28                 Borrowed $27,000 cash from UMB Bank by signing a 60-day, 6% interest-bearing note with a face value of $27,000.

Dec. 31                 Recorded an adjusting entry for accrued interest on the note to UMB Bank.

 2011

 __?__                  Paid the amount due on the note to UMB Bank at the maturity date.

 

1.            Determine the interest expense to be recorded in the adjusting entry at the end of 2010. (Enter 0 if no interest is to be accrued. Use 360 days a year. Do not round your intermediate calculations. Round your final answers to 2 decimal places. Omit the \\\"$\\\" sign in your response.)

 

2.            Determine the interest expense to be recorded in 2011. (Use 360 days a year. Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the \\\"$\\\" sign in your response.)

3.            Prepare journal entries for all the preceding transactions and events for years 2010 and 2011. (Use 360 days a year. Do not round your intermediate calculations. Omit the \\\"$\\\" sign in your response.)

 

ATTACHMENTS
sol-1.xlsx