Question

Chapter 09 Homework Saved 7 Sylvestor Systems borrows $199,000 cash on May 15, 2018, by signing a 60-day, 5% note. 1. On what date does this note mature? 2. Assume the face value of the note equals $199,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. (b) First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your journal entry to record payment of the note at maturity. polnts еВook Complete this question by entering your answers in the tabs below. Req 2B General Req 2B Interest Expense Hint Req 1 Req 2A Journal On what date does this note mature? Print On what date does this note mature? References <Req 1 Req 2A

Answer 1

				Days
	May	(31-15)=		16
	june			30
	july			14
	total			60	Days
1)	july 14,2018
2)	Date	General Journal			Debit	Credit
	15-May	Cash			199,000
		Notes payable				199,000
b)
	principal		199,000
	Rate(%)		5%
	time		60/360
	total interest		1658
Event	General Journal				Debit	Credit
	Notes payable				199,000
	interest expense				1658
	Cash					200,658