Question
Sylvester Systems borrows $76,000 cash on May 15, 2015, by signing a 180 day, 5% note. 1. On what date does this note mature? 2.
Sylvester Systems borrows $76,000 cash on May 15, 2015, by signing a 180 day, 5% note.
1. On what date does this note mature?
2. Assume the face value of the note equals $76,000, the principal of the loan.
A) Prepare the journal entry to record issuance of the note.
B) First complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your journal entry to record payment of the note at maturity.
(INFO ATTACHED)
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Financial Accounting
Authors: W Steve Albrecht, Earl K Stice
11th Edition
0538746955, 9780538746953
