20.00 points Sylvestor Systems borrows $174,000 cash on May 15, 2016, by signing

Question

20.00 points Sylvestor Systems borrows $174,000 cash on May 15, 2016, by signing a 180-day, 5% note 1. On what date does this note mature? O November 10, 2016 November 11, 2016 O November 12, 2016 November 13, 2016 November 14, 2016 2. Assume the face value of the note equals $174,000, the principal of the loan (a) Prepare the journal entry to record issuance of the note View transaction list Journal entry worksheet Recod the issuance of the note. Note: Enter debits before credits. Date General Journal Debit Credit May 15 Record entry Clear entry View general journal (b) First, complete the table below to calculate the interest expense at maturity Use those calculated values to prepare your jo Interest at Maturity

Explanation / Answer

1) Maturity date = November 11,2016

so answer is b) November 11,2016

2) Journal entry :

b) Calculate interest :

c) Journal entry :

Date accounts & explanation debit credit May 15,2016 Cash 174000 Notes payable 174000 (To record money borrow)

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