Question

Sylvestor Systems borrows $91,000 cash on May 15 by signing a 60-day, 4%, $91,000 note. 1. On what date does this note mature? 20. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Interest at Maturity Required 2B General Journal On what date does this note mature? On what date does this note mature? Required 2A >

Answer 1

Note Payable $91,000 Ans 1 4% rate date of borrowing May 15 days 60 Maturity date July 14 Account Title Cash Notes Payable (To record notes payable) Date Credit Debit Ans 2 a May 15 $91,000 $91,000 Total Through Maturity Ans 2 b Principal Rate (%) Time $91,000 4% 60 Total Interest $607 [($91000 x 4%)/360 x 60] Account Title Notes Payable Interest Expense Cash (To record payment of interest and notes payable) Date Debit Credit July 14 $91,000 $607 $91,607