Exercise 7-5 (Algo) Notes payable-discount basis LO 2 [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $278,900. The interest rate charged by the bank was 6.50%. The bank made the loan on a discount basis. a-1. Calculate the loan proceeds made available to Powell. Loan proceeds a-2. Use the horizontal model to show the effect of signing the note and the receipt of the cash proceeds on April 15, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Assets Balance Sheet Liabilities Income Statement Stockholders' Equity Net Income Revenues Expenses a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on April 15, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the proceeds of a short-term note payable (discount basis). Note: Enter debits before credits. Date April 15, 2019 General Journal Debit Credit Record entry Clear entry View general journal b. Calculate the amount of interest expense applicable to this loan during the fiscal year ended June 30, 2019. Interest expense c. What is the amount of the current liability related to this loan to be shown in the June 30, 2019, balance sheet? Current liability