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malfutka [58]
3 years ago
5

Sylvestor Systems borrows $110,000 cash on May 15 by signing a 60-day, 12%, $110,000 note. 1. On what date does this note mature

Business
1 answer:
Salsk061 [2.6K]3 years ago
6 0

Answer:

1. On what date does this note mature? July 14

2-a. Prepare the entry to record issuance of the note.

May 15

Dr. Cash. 110,000

Cr. Notes Payable. 110,000

2-b. 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.

Interest Maturity

Principle 110,000

Rate 12%

Time 60/360

Total interest 2,200

General Journal

Dr. Interest Payable. 2,200

Dr. Notes Payable. 110,000

Cr. Cash 112,200

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