Exercise 11-4 Accounting for note payable LO P1

Sylvestor Systems borrows $166,000 cash on May 15, 2013, by signing a 150-day, 8% note.

1.

On what date does this note mature?

	October 11, 2013
	October 12, 2013
	October 13, 2013
	October 14, 2013
	October 15, 2013

2.	Assume the face value of the note equals $166,000, 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 value to prepare your journal entry to record payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations.)