Required information Exercise 7-7 (Algo) Notes payable-discount basis LO 7-2 [The following information applies to the questions displayed below.] On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $340,000. The interest rate charged by the bank was 8.25%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a Required: a-1. Calculate the loan proceeds made available to Powell. Loan proceeds Required information Exercise 7-7 (Algo) Notes payable-discount basis LO 7-2 (The following information applies to the questions displayed below) On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $340,000. The Interest rate charged by the benk was 8.25% The bank made the loen on a discount basis Exercise 7-7 (Algo) Part a Horizontal model a-2. Use the horizontal model to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Indicate the financiel statement effect Note: Enter decreases with a minus sign to Indicate a negative financial statement effect Expenses Required information Exercise 7-7 (Algo) Notes payable-discount basis LO 7-2 [The following information applies to the questions displayed below.] On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $340,000. The interest rate charged by the bank was 8.25%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: 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 May 15, 2022 General Journal Debit Credit Clear entry View general journal Record entry Required information Exercise 7-7 (Algo) Notes payable-discount basis LO 7-2 [The following information applies to the questions displayed below.] On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $340,000. The interest rate charged by the bank was 8.25%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part b b. Calculate the amount of interest expense applicable to this loan during the fiscal year ended June 30, 2022. Interest expense