1.

On November 7, Rainbow Paints borrows $165,000 cash by signing a 90-day, 10%, $165,000 note payable.

Requirements: Round all answers to the nearest dollar.

Calculate the total interest to be paid on this note.

Provide the journal entry recorded on the date the note was issued.

Provide the necessary adjusting entry at December 31.

Provide the date and journal entry made when the note matures. Assume the year of maturity is not a leap year.

2.

Nebraska Furniture Mart (NFM) sells appliances for $8,000 cash on April 30 (cost of the merchandise is $5,500). NFM collects 7.5% sales tax.

Required:

Prepare the journal entries to record:

Sale that occurred on April 30.

Remittance of sales tax to appropriate governing body on May 15.