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Question - Sylvestor Systems borrows $109,000 cash on May 15, 2017, by signing a 90-day, 8% note.
1. On what date does this note mature?
2. Assume the face value of the note equals $109,000, the principal of the loan.
(a) Prepare the journal entry to record issuance of the note.
(b) First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare journal entry to record payment of the note at maturity. (Use 360 days a year. Round final answers to the nearest whole dollar.)
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