Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note. 1. On what date does this note mature? June 14, 2017 2. Assume the face value of the note equals $161,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. Date General Journal Debit Credit May 15 cash 161,000 notes payable 161,000 b) First, complete the table below (picture #2: find the missing total interest) 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. Round final answers to the nearest whole dollar.)
Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note. 1. On what date does this note mature? June 14, 2017 2. Assume the face value of the note equals $161,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. Date General Journal Debit Credit May 15 cash 161,000 notes payable 161,000 b) First, complete the table below (picture #2: find the missing total interest) 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. Round final answers to the nearest whole dollar.)
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 11Q: Will an accounts receivable balance increase with a debit or a credit entry? How do you know?
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Question
Sylvestor Systems borrows $161,000 cash on May 15, 2017, by signing a 30-day, 5% note.
1. On what date does this note mature?
-
June 14, 2017
2. Assume the face value of the note equals $161,000, the principal of the loan.
(a) Prepare the
| Date | General Journal | Debit | Credit |
| May 15 | cash | 161,000 | |
| notes payable | 161,000 |
b) First, complete the table below (picture #2: find the missing total interest) 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. Round final answers to the nearest whole dollar.)
Transcribed Image Text:Interest at
Maturity
Principal
161,000
Rate (%)
5%
Time
30/360
Total interest
%24
Transcribed Image Text:Record the payment of the note at maturity.
lote: Enter debits before credits.
Event
General Journal
Debit
Credit
1
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