Exercise $4\mathrm{.}8($Algo$)$ Notes Payable and Interest $($LO$4-1,$ LO$4-2,$ LO$4-5)$

Jesse Company adjusts its accounts monthly and closes its accounts on December $31.$ On October $31,$ year $1,$ Jesse Company signed a note payable and borrowed $$140,000$ from a banffor a period of six months at an annual interest rate of $6$ percent.

Required:

a$.$ How much is the total interest expense over the life of the note? How much is the monthly interest expense? $($Assume equal amounts of interest expense each month.$)$

b$.$ In the company's annual balance sheet at December $31,$ year $1,$ what is the amount of the liability to the bank?

c$.$ & d$.$ Prepare the journal entry to record issuance of the note payable on October $31,$ year $1$ and the adjusting entry to accrue interest on the note at December $31,$ year $1.$

e$.$ Assume the company prepared a balance sheet at March $31,$ year $2.$ State the amount of the liability to the bank at this date.