9 Ex Q 1

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Sylvestor Systems borrows $159,000 cash on May 15, 2017, by signing a 150-day, 6% note 1. On what date does this note mature? O October 11, 2017 O October 12, 2017 O October 13, 2017 O October 14, 2017 O October 15, 2017 note equals $159,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Record the issuance of the note Note: Enter debits before credits. Date General Journal Debit Credit May 15 (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. (Use 360 days a year. Round final answers to the nearest whole dollar.) Interest at Maturity Principa Rate (%) Time Total interest Journal entry worksheet Record the payment of the note at maturity Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Keesha Co. borrows $275,000 cash on November 1, 2017, by signing a 120-day, 10% note with a face value of $275,000. 1. On what date does this note mature? (Assume that February has 28 days) O March 27, 2018. O March 28, 2018. O March 29, 2018. O March 30, 2018. O March 01, 2018. 2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) Total Interest Interest maturity Expense 2017 Expense 2018 Principal Rate (%) Time Total interest 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the issuance of the $275,000 note. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the interest accrued on the note as of December 31, 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record payment of the note at maturity, assuming no reversing entries were made on January 1. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Question

9 Ex Q 1

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2

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Sylvestor Systems borrows $159,000 cash on May 15, 2017, by signing a 150-day, 6% note 1. On what date does this note mature? O October 11, 2017 O October 12, 2017 O October 13, 2017 O October 14, 2017 O October 15, 2017 note equals $159,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Record the issuance of the note Note: Enter debits before credits. Date General Journal Debit Credit May 15 (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. (Use 360 days a year. Round final answers to the nearest whole dollar.) Interest at Maturity Principa Rate (%) Time Total interest Journal entry worksheet Record the payment of the note at maturity Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Keesha Co. borrows $275,000 cash on November 1, 2017, by signing a 120-day, 10% note with a face value of $275,000. 1. On what date does this note mature? (Assume that February has 28 days) O March 27, 2018. O March 28, 2018. O March 29, 2018. O March 30, 2018. O March 01, 2018. 2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) Total Interest Interest maturity Expense 2017 Expense 2018 Principal Rate (%) Time Total interest 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the issuance of the $275,000 note. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the interest accrued on the note as of December 31, 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record payment of the note at maturity, assuming no reversing entries were made on January 1. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal