Organic Farmers Co-Op borrows $336,000 cash on October 1, 2018, by signing a 180-day, 15% note with a face value of $336,000.

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.)