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 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

Answer 1

The maturity date of Note shall be 90 days from May 15 which is August 13
Date	Accounts and explanation	Debit(in $)	Credit(in $)
May-15	Cash	172000
	Note Payable		172000
Particulars	Interest at Maturity
Principal	$                                                               1,72,000
Rate %	5%
Time	90/360 days
Total Interest($172,000*5%*90/360)	$                                                                    2,150
Date	Accounts and explanation	Debit(in $)	Credit(in $)
Aug-13	Note Payable	172000
	Interest expenses	2150
	Cash		174150