Sylvestor Systems borrows $197,000 cash on May 15, 2015, by signing a 30-day, 5% note.

1.

On what date does this note mature?

	June 13, 2015
	June 14, 2015
	June 15, 2015
	June 16, 2015
	June 17, 2015

2.	Assume the face value of the note equals $197,000, the principal of the loan.

(a)

Prepare the journal entry to record issuance of the note.

Journal entry worksheet

Recod the issuance of the note.

Note: Enter debits before credits.

Date

General Journal

Debit

Credit

May 15

(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. (Use 360 days a year. Do not round intermediate calculations.)

Principal Rate (%) Time Total Interest

Journal entry worksheet

Record the payment of the note at maturity.

Note: Enter debits before credits.

Event

General Journal

Debit

Credit

1