Question
Wilson Systems borrows $172,000 cash on May 15 by signing a 90-day, 5%, $172,000 note. 1. On what date does this note mature? 1a. Prepare
Wilson Systems borrows $172,000 cash on May 15 by signing a 90-day, 5%, $172,000 note. 1. On what date does this note mature? 1a. Prepare the entry to record issuance of the note. 1b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity.
1:
1a:
No | Date | General Journal | Debit | Credit |
1 | May 15 | |||
1b: First, complete the table below to calculate the interest expense at maturity. (Use 360 days a year. Round final answers to the nearest whole dollar.)
Interest at maturity | |
principal | |
rate % | |
time | |
total interest |
1b: Record the payment of the note at maturity
Event | General Journal | Debit | Credit |
1 | |||
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