Organic Farmers Co-Op borrows $100,000 cash on December 1, 2018, by signing a 180-day, 12% note with a face value of $100,000.

Required:

1. How much interest expense results from this note in 2018?

2. How much interest expense results from this note in 2019?

3. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2018, and (c) payment of the note at maturity. (Assume no reversing entries are made.)

Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 How much interest expense results from this note in 2018? (Use 360 days a year. Do not round intermediate calculations.) Total interest in 2018 ,000 Required1 Required 2