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Question 5(10 marks) Petals Inc. signed a $150.000. zero-interest-bearing, six month prormissory note on May 1. 2018. The note's present value is $142.987 based on
Question 5(10 marks) Petals Inc. signed a $150.000. zero-interest-bearing, six month prormissory note on May 1. 2018. The note's present value is $142.987 based on the bank's discount rate of 8% The company's year-end is October 31, 2018 and the note is repayable on November 1, 2018 Instructions Part a: Prepare the journat entres on the books of Petals Inc. to record the ssue of the note (3 marks) Instructions Part b: Prepare the jounal entries on the books of Petals to record the year-end interest accrual (4 marks) Instructions Part c Prepare the journal entries on the books of Petals Inc, to record repayment of the note o October 1, 2018
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