1. Prepare the journal entry to record the issuance of the note.
2. Record accrued interest expense for the period ending December 31, Year 1.
3. Prepare the journal entry to record the payment of the note at maturity.
A A B C D E F G H K L M Given Information* Answers: Issue Date Maturity Date Principal Rate June 1 , Year 1 March 1, Year 2 100,000 6% (a) Issue note Cash Notes Payable June 1, Year 1 100,000 100,000 (b) Interest Expense Number of months Interest of interest in year expense 7 3,500 1,000 December 31, Year 1 March 1, Year 2 How would your answers change if the nine-month note had been issued on June 1 and was due the following March 1 (principal and interest remain the same)? December 31, Year 1 (c) Accrue interest Interest Expense Interest Payable 3,500 3,500 (d) Pay cash at maturity Notes Payable Interest Payable Interest Expense Cash March 1, Year 2 100,000 3,500 1,000 104,500 23 * Insert a different amount in any of the blue cells in the given information to see alternative calculations. 24 25 30s 1 2:19 1223 1x cc Homework Chapter #8 x + - x C G Issue Date July 1, Year 1 Maturity Date April 1, Year 2Principal 180,000Rate 6 %Required:1. Use your spreadsheet to recalculate the amounts related to the note... P T 1305 1 2:19 12:23 1x CC nts eBook Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Print eferences Issue Date Maturity Date Principal Rate July 1, Year 1 April 1, Year 2 180,000 6% Required: 1. Use your spreadsheet to recalculate the amounts related to the note and then prepare the related journ required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Type here to search o e - a * $ @ w 9 ^ O la 3/22/2020 Homework Chapter #8 X + - 0 x f C G Issue Date July 1, Year 1 Maturity Date April 1, Year 2Principal 180,000Rate 6 %Required:1. Use your spreadsheet to recalculate the amounts related to the note... Homework Chapter #8 A Saved Help Save & Exit Submit Check my work 12 Required information 2. Assuming the rate changes to 7%, what is the revised amount of interest accrued at the end of Years 1 and 2? 7.69 points eBook Year 1 Year 2 Print References 3. Assuming the maturity date also changes to February 1, Year 2, what is the revised amount of interest accrued at the end of Years 1 and 2? Year 1 Year 2 Mc Graw Hill Education Type here to search
