Question

Chapter 9 Exercises i Saved Sylvestor Systems borrows $148,000 cash on May 15 by signing a 180-day, 5%, $148,000 note. 1.33 points 1. On what date does this note mature? 2-a. 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. eBook Required 1 Required 2A Required 2B Interest at Maturity Required 2B General Journal Hint On what date does this note mature? Print On what date does this note mature? Required 1 Required 2A >

Answer 1

1.

May	16 days
June	30 days
July	31 days
August	31 days
September	30 days
October	31 days
November	11 days
Total	180 days

Maturity date of note = 11 November

2a.

Date	General Journal	Debit	Credit
May 15	Cash	$148,000
	Note payable		$148,000
	( To record issuance of note)

2b.

Interest expense = Note payable x Interest rate x Time period

= 148,000 x 5% x 180/360

= $3,700

Date	General Journal	Debit	Credit
November 11	Note payable	$148,000
	Interest expense	$3,700
	Cash		$151,700
	( To record payment of note)

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